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ESE Entertainment Inc V.ESE

Alternate Symbol(s):  ENTEF

ESE Entertainment Inc. is a Canada-based global technology company focused on gaming and esports. The Company provides a range of services to video game developers, publishers, and brands by providing technology, infrastructure, and fan engagement services internationally. It also operates its own e-commerce channels, esports teams, and gaming leagues. It operates through the digital media and entertainment segment. Its portfolio includes Frenzy, Virtual Pitstop, and K1CK. Frenzy is a media and production company, which is focused on the video game industry. Frenzy creates and executes esports and gaming events, broadcasts, and media content. Frenzy also operates professional mobile, automated TV equipment. Virtual Pitstop provides technology for video game developers, racing fans, and gamers to engage in motorsport-related esports across the globe. K1CK manages esports teams that compete across multiple games and platforms, including League of Legends, FIFA, Apex Legends, and more.


TSXV:ESE - Post by User

Post by StockOne1on Sep 29, 2022 11:22am
154 Views
Post# 34994906

Financials Thoughts

Financials Thoughts

- Revenue: $15.93M This is up +276%, which stands with how Konrad rolls.
- Gross Profit: $3.12M | +595% YoY. I wonder if there's room for higher margins?
- Adjusted EBITDA: $74,539 for the nine months ended July 31, 2022. I think next quarter, the Company will well surpass this.
- 8th Q in a row of growth - Net loss is mainly due to acquisition costs (reflected by the share-based payments line item in the income statement)
- Total assets as at July 31, 2022 of $33.71M | compared to total assets as at October 31, 2021 of $15.94M

I think the acqusition costs are completely reasonable, I would like to see a larger spend on marketing however. It does seem the Company is paying themselves not agregously, nor are there any red flags when it comes to consulting, etc.

 

Based on these results, I am picking up more stock over the next couple of days.

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