Leap Gaming15 Mar 2021 15:27
Excellent interview. She was not afraid to ask anything and Ed McDermott was honest in his answers, clearly expressing his frustration at times. I do not expect him to buy shares in FFWD, this is not now realistic given that he is a director in the process of taking leap to IPO/buyout. I believe him when he says his reputation is more important to him than having a few shares in this. If FFWD fails, it does no favours for his successful career. He is now a multimillionaire following the EMMAC sale. He also gets his Leap Options at 19p
For me, it is just a question of letting things play out until Leap in Q3. I expect some news in between, that I hope, will lift the share price. However, I have always been here for Leap. As he mentioned in the interview, things can compound very quickly.
Leap was created in 2015. At December 2016 revenue $247,000, At December 2107 $537,000.
So in the first couple of years, from zero games they managed to quickly grow revenue to $537,000. In 2018 IMG Arena became involved, opening up new distribution channels, whilst they also developed new games.
Their growth since this period is illustrated in these 2 interviews:
https://leap-gaming.com/interview-with-leaps-ceo-yariv-lissauer/ March 2020 interview (Before COVID) with Leap CEO noting that their football game has been growing 240% year on year.
https://www.gamblinginsider.com/friday/tgif/tgif-2020-25.pdf?new1 June 2020 interview Freddie Longe notes that since the instant football game launches in Jan 2019, it has grown at 23% PER MONTH (Compounds to 1099% ??)
Both of the interviews refer to the growth of the instant football game, which is the main income generator of Leap. If we can use 100% growth for 2018 and 2019 revenue becomes $1m for 2018 and $2m for 2019.
Inspired Entertainment recently announced that its virtual sports/online gaming grew 170% Jan to Dec 2020. I am sure, given the boost from COVID that this would have been over 200% for the 12 months from March 2020.
If we take $2,000,000 from 2019 and apply 200% for 2020 we come to $6m turnover. If this is multiplied by 7 we get to $42m valuation on Leap or £30.2m
Of this FFWD have 43% or £13.m
Instead of 100% for 2018, 100% for 2019 and 200% for 2020, we could consider growth rate of Leap CEO, Yarif of 240% year on year.
So lets say 150% for both 2018 and 2019 and 200% for 2020. We get 2018 $1.5m, 2019 is $3.75m and 2020 $11.25m.
Multiply the $11.25 by 7 for Leap sale value of $78.75 or £56.73m. Of this 43% to leap would be £24.39.
Now maths was never my strong point, so apologies if anything is incorrect. I just want to illustrate how quickly sales growth will compound. I have not used the amazing 24% Per month figures from Freddie Longe, and I do expect that we are continuing to grow well during 2021, so revenue figures will be higher than those of December 2020.
I do not know what the value of Leap is, but confident it will t
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