I've been investing in esports for a few years now across multiple markets, I exited the esports sector last year when I realised that the interest rate environent was going to have impact on the advertising sector. The worst seems to be over and I've started to position back into the sector. I've been researching SHO as one of the few listed esports companies left, completely understand there is some work to be done to get it on track but the potential should not be underestimated. Its been a difficult space to operate so I suspect the company has been trying to carefully manage its cash resources but it won't be very difficult for them to tap into their partnerships to generate significant revenues.
If you look at their 3 key partnerships:
1. Indonesia’s Football Association (a.k.a PSSI), The SportHero Web app is being used as the official site hosting rich content, including access to
video footage of games, events and features of the Indonesian national teams and its players opening up many revshare opps, the rev share opps will include advertising, third-party sponsorship,direct marketing, gamification, merchandise, tickets, premium content etc. With access to a growing fanbase currently at 80m, the potential here is significant;
2. IGVault, enabling SportsHero to distribute iGV.com and providing esports virtual asset trading access across SE Asia, iGV has generated over $1bn USD in revs already;
3. Talon, a leading esports gaming team and media company with over 20 million socialmedia followers in 6 markets in Southeast Asia. International appeal due to the teams links to the Middle East funded PSG.
These partnerships have great revenue potential if the company can start to execute on their plans, revenues will start to growth. I don't have to tell any of you the size of the esports market and its growing appeal. Everyone is always negative at the bottom but its usually the best time to buy. All the msart people in my circles are buying back into the sector.
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