Thursday, June 23, 2022
Engine Gaming and Media (GAME)
Light At The End Of The Tunnel
Engine Gaming and Media, Inc. (NASDAQ:GAME) (TSX-V:GAME) provides premium social sports and esports gaming experiences, as well as unparalleled data analytics, marketing, advertising, and intellectual property to support its owned and operated direct-to-consumer properties, while also providing these services to enable its clients and partners. The company’s subsidiaries include Stream Hatchet, the global leader in gaming video distribution analytics; Sideqik, a social influencer marketing discovery, analytics, and activation platform; WinView Games, a social predictive play-along gaming platform for viewers to play while watching live events; and Frankly Media, a digital publishing platform used to create, distribute and monetize content across all digital channels. Engine Media generates revenue through a combination of direct-to-consumer fees, streaming technology and data SaaS-based offerings, and programmatic advertising. For more information, please visit www.enginegaming.com.
Michael Kupinski, Director of Research, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Exits UMG. The company announced that it has sold its UMG subsidiary to Harena Data, Inc. in an asset purchase. Purchase price was not disclosed, but we expect it to be diminutive. We view the sale favorably as the company exits this money losing operation and as the company positions itself to swing toward break even and concentrates on its profitable growth oriented businesses.
Strategy gains visibility. The recent moves shift the company away from direct-to-consumer platforms in order to focus on its B2B businesses that carry higher margins. The repositioning of the company is expected to swing the company toward run rate break cash flow by the second half fiscal 2023….
This Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.
