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Gaming Firm's Sportsbook 'Smashes Revenue Expectations' in October

Source: Streetwise Reports

 

November 11, 2020 (Investorideas.com Newswire) Current and future growth of FansUnite Entertainment are discussed in a Mackie Research Capital Corp. report.


In a Nov. 5 research note, Mackie Research Capital Corp. analyst Bill Newman reported that FansUnite Entertainment Inc.'s (FANS:CSE; FUNFF:OTCMKTS) subsidiary McBookie Ltd. generated CA$602,000 in revenue in October 2020, a 433% year-over-year increase, on total betting volume of CA$7.3 million.

"Revenue from McBookie has far exceeded our expectations," Newman added. "Annualized, the October 2020 revenue is CA$7.2 million, which is nearly double our 2021 forecast of about CA$4 million."

Specifically, CA$197,000 of October revenue came from the new Live Casino product on total betting volume of CA$5.1 million. The remaining CA$405,000 came from sports betting.

Both segments are growing. Sports betting has picked back up with major European leagues returning to play following a slowdown related to COVID-19. FansUnite's casino gaming and virtual sports gaming "have experienced rapid growth due to the pandemic, as new players joined to participate in the online offerings," Newman indicated.

The analyst also reported that FansUnite over the next 12 months aims to expand its Askott Games portfolio to include 10-plus games that blend casino-style random number generator (RNG) games and esports and video game themes. The company can offer these RNG games to its partners via its Chameleon Gaming Platform or can license them to casino game aggregators.

FansUnite signed an agreement with one such aggregator, The Ear Platform, which will distribute Askott games to about 120 Internet gaming sites throughout Europe. This should generate steady, recurring revenue for FansUnite because each time someone plays an Askott Games game, FansUnite receives a percentage of the net gaming revenue, the analyst noted.

"FansUnite is in talks with multiple other casino aggregators that could give the company access to thousands of sports books within the online casinos," Newman pointed out.

The analyst concluded the report by reiterating that FansUnite is a growth story. Opportunities for rapid growth lie in expansion of business-to-to business and business-to-consumer revenue streams and from additional strategic acquisitions, which the company is keen to make.

Mackie Research has a Speculative Buy rating and a CA$0.55 target price on FansUnite. The stock is now trading at about CA$0.25 per share.

Disclosure:

1) Doresa Banning compiled this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor. She or members of her household own securities of the following companies mentioned in the article: None. She or members of her household are paid by the following companies mentioned in this article: None.

2) The following companies mentioned in this article are billboard sponsors of Streetwise Reports: None. Click here for important disclosures about sponsor fees. As of the date of this article, an affiliate of Streetwise Reports has a consulting relationship with FansUnite. Please click here for more information.

3) Comments and opinions expressed are those of the specific experts and not of Streetwise Reports or its officers. The information provided above is for informational purposes only and is not a recommendation to buy or sell any security.

4) The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional and any action a reader takes as a result of information presented here is his or her own responsibility. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.

5) From time to time, Streetwise Reports LLC and its directors, officers, employees or members of their families, as well as persons interviewed for articles and interviews on the site, may have a long or short position in securities mentioned. Directors, officers, employees or members of their immediate families are prohibited from making purchases and/or sales of those securities in the open market or otherwise from the time of the decision to publish an article until three business days after the publication of the article. The foregoing prohibition does not apply to articles that in substance only restate previously published company releases. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of FansUnite, a company mentioned in this article.

Disclosures from Mackie Research, FansUnite Entertainment Inc., Update, November 5, 2020

RELEVANT DISCLOSURES APPLICABLE TO COMPANIES UNDER COVERAGE

1. This Issuer has generated investment banking revenue for MRCC.

2. Relevant disclosures required under Rule 3400 applicable to companies under coverage discussed in this research report are available on our web site at www.mackieresearch.com.

ANALYST CERTIFICATION

Each analyst of Mackie Research Capital Corporation whose name appears in this report hereby certifies that (i) the recommendations and opinions expressed in this research report accurately reflect the analyst's personal views and (ii) no part of the research analyst's compensation was or will be directly or indirectly related to the specific conclusions or recommendations expressed in this research report.


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