Esports Entertainment Group (EEG) has experienced significant growth and success in 2021, and this forward momentum is expected to continue into next year, as the group projects revenue of $100 million.
The firm – which is listed on the Nasdaq as GMBL – is currently trading at two times the forward revenue, with a current market cap of $189 million.
Furthermore, EEG has been given varying estimates of stock target prices and ratings by research groups, including $20 by Benchmark and HC Wainwright and $30 by Maxim Group.
A sharp increase in market interest in esports has played a key role in the group’s recent success, as the US sports wagering sector continues to libersalise and esports as a betting market receives more and more attention.
Speaking to RedChip Companies last week, EEG CEO Grant Johnson detailed the firm’s success, which he attributed to both the popularity of esports in addition to the company’s effective recruitment policy.
“We’ve gone from in the last 14 months that’s our listing on NASDAQ from a revenue of a couple $100,000 to $100 million in guidance,” he explained. “We’ve gone from having one licence to six tier one licences, and with staffing we’ve gone from 12 to 250.
“It’s been quite a radical change. And you can only do that with quality people. My background in the online gambling business goes back to the mid 90s. 1995 and 1996 was when I got involved, so I have a lot of deep contacts in the industry.”
EEG is, of course, not the only firm benefiting from esports dramatic rise, as Esports Technologies – which trades on the Nasdaq as EBET – currently maintains a market cap of $280 million and revenue of $160,000, meaning the company is trading at 1,600 times revenue.
Meanwhile, DraftKings – on Nasdaq as DKNG – is currently trading at 23 times revenue, although the leading US sports betting brand is losing $1.5 billion (TTM).
Discussing EEG’s success, Johnson noted: “The Vie.Bet product which is currently operational in the European markets and Latin American markets. That’s an esportsbook, for lack of a better expression.
“It’s where fans of eSports can go and they can bet on teams who are playing League of Legends, Dota, Counter Strike – these professional teams professional players who play in tournaments, they’re looking for purses of over a million dollars, and it gives the fans a chance to bet on those teams just like traditional sports.”
Source – RedChip Companies YouTube Channel