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OK. That makes no sense to me. I am staying here for Leap. Good luck
That is strange as their revenue to December 2017 was $530,000. It is now a lot higher than that.
Not sure if this was mentioned before, but nice to see on Stockopedia that Bofa Securities Inc, which is part of Bank of America, bought 416,700 shares in FFWD on Jan 15, 2021
Leap competitor, Inspired Entertainment, now valued at $260m. Up 5x this year. https://finance.yahoo.com/quote/INSE/
Looking good for the Leap sale price
https://www.sbcnews.co.uk/features/2021/03/16/vermantia-virtual-football-league-classic-sports-betting-game-mobile-first/
What instead is a reality, is the growth of mobile betting which has expanded exponentially across the globe over the last years as the popularity has particularly been enhanced by the growth of mobile technology, the fast development of 5G and smartphones features.
The data speaks for itself. A tremendous shift presented in players’ preference regarding the way they bet. Between 2018 and 2020 there was a 500% increase in the number of visitors that have been using a mobile device to visit a website for betting purposes.
https://www.slotscalendar.com/news/meet-the-slots-creators-leap-gamings-chris-whittle-interview#gref
10 new games in 2021, including 3 to be released in Q1
Typically 6-7x 2022 revenues but can be anything up to 18x. It depends on many factors. For example, If a company is consistently showing a 75-100% + year on year revenue increase I’d expect to see higher a minimum 7x.
*This is for listed cos
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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I am sure there will be more to come. At the last trading update, they advised that they went to 6.1m cash positive and profits up 10%. https://www.investegate.co.uk/eleco-plc--elco-/rns/year-end-trading-update/202101190700040938M/
ELCO upped their sales focus on the US and are sure to benefit from the Biden infrastructure spending.
Instant Football is our most popular game across the virtual suite. Since it launched in January 2019, it has been growing at an average of 23% per month. That was already increasing sharply at the start of 2020 and during the last few months, our products are typically showing strong treble-figure percentage growth.
June 2020, Freddie Longe, Managing Director of IMG Arena
https://www.gamblinginsider.com/friday/tgif/tgif-2020-25.pdf?new1
This may not be the share for you. I assume that it will be 7. I also do not expect any lynchings and will be here until Q3.
It really depends on what the revenue now is
If IMG is appointing lawyers for the purchase of FFWD shares in the company, then Ed already knew this at the investor presentation last week (as he would have also know the details of the EMMAC sale). At the end of the presentation, I recall that he advised that companies such as Leap Gaming are valued at about 7x revenue. So I guess the question is, what is the revenue of Leap?
Below are the RNSs of Leap that relates to revenue. So I guess the question is, what is the revenue of Leap?
RNS April 11, 2016
For the 12 months ended 31 December 2015, Leap Gaming had revenue of US$247,000 and incurred a trading loss of US$646,000 for the period. At 31 December 2015 Leap Gaming had total assets of US$2,303,000.
RNS July 9, 2018
Through 2017 Leap Gaming has more than quadrupled its customer-base and the total number of Daily Active Users who engage with its products. Gross Gaming Yield generated through Leap Gaming's products increased by more than 5 times throughout 2017. For the 12 months ended 31 December 2017, Leap Gaming incurred a trading loss of US$ 973,000 on turnover of US$537,548 and reported Net Assets as at 31 December 2017 of US$5,575,101.
RNS June 22, 2020
During the first five months of 2020, Leap Gaming made significant progress advancing its business plan with substantial growth delivered including 123% year-on-year (y-o-y) increase in gross gaming revenues (Jan-May 2020 v Jan-May 2019). Additionally, it has seen a 95% y-o-y increase in revenues (Jan-May 2020 v Jan-May 2019), with more than 30 new customers signed and/or partnerships agreed. Notably, it has also signed deals with ATP 1000 and NASCAR and expanded its footprint to new territories such as Latin America.
The RNS history relating to leap indicates how quickly it has grown without the input of the recent 2020 contracts.
https://www.pymnts.com/earnings/2021/inspired-sees-more-than-2x-growth-in-virtual-gaming-revenue/
This interview from September is great watching for those interested in ELCO https://www.youtube.com/watch?v=kOitn4U8vRQ
Going back over the RNSs, this is the first time I can see an investor presentation. I also see that we are now looking at a liquidity event, rather than specifically an IPO for Leap. Is it possible that by Tuesday we will be aware of a Leap buy-out?
I am sure this is just wishful thinking on my part
Sorry, Inspired Entertainment is up 400% in 12 months , not 2 months.
What is truly exciting to know is the value of Leap Gaming. Inspired Entertainment (Nasdaq:INSE) is a director competitor, providing virtual games to the same international gaming sites. Despite losing millions every year the share price has grown over 400% in 2 months taking them to a valuation of $204m. This is on the back of virtual sports growth.
https://finance.yahoo.com/quote/INSE?p=INSE
Alternatively, we can look at Gaming Realms here on the AIM market. They have grown quickly over the past 12 months, but not as quickly as Leap. Like Leap, they were expected to move into profit at the end of last year. They are today valued at £93m.
Ed McDermott joined the Leap board 2 months ago to take them to IPO https://www.youtube.com/watch?v=5sSQKc_mcF0
So what value is our 43% of Leap?