Monday, April 18, 2022

Engine Gaming and Media (GAME)(GAME:CA)
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Engine Media Holdings Inc is engaged in esports data provision, esports tournament hosting, and esports racing. Its brand profile includes Eden Games, Allin sports, and UMG, and others. The company’s operating segments include E-Sports; Media and Advertising and Corporate and Other. It generates maximum revenue from the Media and Advertising segment. The Media and Advertising segment includes platform and advertising services provided to other broadcasters, primarily local tv and radio broadcasters.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Favorable Q2 results. Fiscal Q2 results reflected the sale of Eden Games. On a comparable basis, treating Eden as discontinued operations, Q2 revenues grew a strong 20% to $9.26 million, with an adj. EBITDA loss of $6.4 million, better than the year earlier loss.

Re-focusing the business.  Following the sale of Eden Games, the company is expected to streamline its businesses and lower its cash burn. Management indicated the company may divest of UMG and Windview. We view this potential move favorably as it will allow management to tend to its strong growth oriented businesses, sharpen the focus of the company, and put the company on a path toward positive …

This Company Sponsored 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.