MIGHTY KINGDOM LIMITED MKL IPO Analysis

From the prospectus , Media articles and Company presentation


MIGHTY KINGDOM LIMITED

IPO Price $0.30
SOI 151 Mil
Mcap $ 45.5 Mil
Cash $ 18mil
EV $ 27.5 Mil

Mighty Kingdom is Australia’s largest independent game developer with over 80 staff. It was named the 2019 Studio of the Year at the 2019 Game Connection Asia Pacific Game Developer Awards, Australia’s most prestigious game developer award. To-date, Mighty Kingdom has released more than 50 games, with more than 50 million downloads.

Its current in-market games include 9 Shopkins games, LEGO Friends: Heart lake Rush, Snap’s Sugar Slam, Wild Life: Puzzle Story and Ava’s Manor.
Within the first half of 2021, Mighty Kingdom is scheduled to release Conan Chop Chop (its first console game) and Sony Pictures’ Peter Rabbit Run.

Mighty Kingdom also has several other games in development with release schedules throughout 2021/2022.

Tier-1 Partners –

Mighty Kingdom has partnered with global tier-1 brands and game developers, including Disney, Sony and Lego

Commercially Validated Platform –

Mighty Kingdom has released more than 50 games to over 50 million players worldwide across multiple platforms

Mighty Kingdom operates in the global interactive games market, which spans the mobile, PC and console games segments. Reports indicate that this will be a $200 billion + market by 2023.1 Mighty Kingdom develops games across all segments (mobile, console and PC), but has to-date focused primarily on the development of mobile games.

Mighty Kingdom is well positioned to benefit from projected growth in the mobile games segment, as well as from the release of “next generation” consoles that are expected to attract new gamers and increase the available pool of gamers across all segments.

Mighty Kingdom has also been able to position itself to take advantage of emerging trends in the global games market such as the increasing numbers of female gamers and rising interest in cloud gamingAll their games and clients got extremely positive feedback about their games




Mighty Kingdom got amazing pipeline of games envelopment




Significant growth expected in FY21 with further potential upside. Launching additional games that may deliver revenue outperformance.

Pipeline includes multi-platform titles with budgets ranging from $2-3.5m

COVID-19 has further accelerated the growth of the gaming industry globally

‘Ava’s Manor’ is significantly outperforming initial expectations (now with US$20m annualized advertising budget) – will contribute to FY22 revenue

Conclusion

Last week was a bit of a disaster in terms on IPOs as there were 7 IPO listings last week . Some of them performed well and some did not performed as well as I expected

This week we are back to normal and we have MKL listing today

It is extremely rare that under 30 mil EV company got global tier-1 brands and game developers partners including Disney, Sony and Lego

Management in their interviews suggested a strong Growth in revenues in FY21 and FY22

IMO Mighty kingdom MKL and Playside PLY are the only revenue making legit gaming plays on ASX

IMO MKL will replicate the success of PLY IPO

It should open around 45c to 50c ( at 50c It will be 57 mil EV ) and with the launch of their new games it will get some more traction

And as we all know if one or two of their games will go viral .. It wouldn't take them long to achieve blue sky revenues scenario !

Its a good risk/ reward proposition at 27.5 mil EV

I have participated in the IPO and I intend to hold it for medium to long term ( subject to Market conditions)

Please DYOR

GLTAH

ALL IMO