Member Info for MB10

Worth going back to the structure of the contract for Frankfurt 22, which even although the 2nd day wasn’t filled, was profitable, and that’s with no sponsorship or streaming contribution, plus the merchandising was in its infancy, yet met the minimum revenue guarantee. (Plus I’ve seen evidence that the profit to lvcg is significantly higher from Frankfurt 22 than reported, but we will have to await details of that being released). If the 2nd day had been filled, do the sums and the profit from the event would have been circa £1.8 million.

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Structure of Frankfurt 23
“Revenue generated via sale of tickets, merchandise, sponsorship, TV broadcasting and streaming and profit share
The event is a joint venture agreement between a number of parties which is the usual format for this type of festival. The European partners consist of; KPE - a 50% subsidiary of LVCG, who are the Touring Promotor, PKE who are the Promotor and DB Stadium - the stadium partner. The Korean partners are SBS who are responsible for broadcasting and streaming in Korea, artist sourcing and their two consulting companies one of which is SSD Media Group. KPE has the option to extend the festival annually for up to a further four years for no further payments.
KPE will be contributing $400,000 of the total $1.75 million financing cost, with the initial payment of $50,000 payable now and the remainder structured in the run up to the event.
LVCG owns 50% of KPE. KPE earns revenue via a number of sources including; 40% of sponsorship revenue, 100% of the net profit of event related on-line merchandising, 75% of the net profit of merchandising at the event, 100% of broadcast and streaming rights (ex-Korea), annual consultancy fees of Euro 200,000 and a percentage of the ticket sale profits.”
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It’s looking increasingly likely that a new structure is being negotiated, lower costs, and better percentages for LVCG.

Sponsorship wasn’t a feature last time, but could be a big contributor if a series of KPOP events is landed across Europe and indeed further afield (including Middle East and Japan - between 7 and 9 in 2023). That will be even better if sponsorship is increased to a minimum of 60% (and even 80% and 100% in some cases). Expect a bigger staff costs reimbursement and a move to live streaming (immediate) for some events IMO.

With SBS back in the frame for booking artists, the formula of having 2 x S level artists and 5 x A level artists should provide enough of a draw to fill the stadiums, and there will hopefully be a better and longer lead time into the events too.

With a market cap of only £7 million, LVCG only needs to generate £700,000 in profit for that to be fully supported. 2023 is looking like it’s going to be a really big turn around for the company.

Looking at the new kpopflex website and the LVCG website I’d say the company are getting ready for some big announcements in the very near future, including dates on the European tour, details of how the deal with SBS will change and KPOP sponsorship (which under the Frankfurt 22 deal KPE got 40% of sponsorship revenue). Everything is pointing to 2023 being one of the biggest turn arounds ever IMO. Sentiment is so low, the market cap so small, and with such a small free float (43%), that it’s not going to take much buying volume to significantly move the share price. I personally look forward to plenty of “look what you could have got if only you held 4.3%” posts :-)

Cape Town hospitality packages marketing in full swing.

https://belugahospitality.co.za/wp-content/uploads/2018/05/2023-Cape-Town-E-Prix-Hospitality-Packages-Beluga-Hospitality.pdf

New bricklive event opens in Koln today.

https://www.odysseum.de/steinegarten/

https://capetowneprix.com/hospitality-packages/

Hospitality packages for Cape Town now on sale

There’s a lot of big news to come in lvcg IMO. DC is in active negotiation with SBS and others for a European tour and Japan KPOP festival that will see between 7 and 9 concerts next year. Without sponsorship and streaming revenue, Frankfurt 22 was already profitable from a standing start, and if the stadium had been filled on the 2nd day would have made an overall profit of £1.8m . If DC can negotiate better control on costs and a bigger slice for LVCG (and I saw some evidence this week that he is doing exactly that) its not hard to see how the profits will rack up next year.

Then add Formula E division which is already predicted to have a 7 figure profit and that’s before a slice of the £3m plus ticket revenue, sponsorship, efest, sustainability comference, golf tournament or concert is added. With the coincident Volvo ocean race attracting 350,000 plus visitors to the waterfront last time there’s going to be a good crowd of punters to sell to IMO.

Then StartArt with its forecast £488k EBIT in 2022 and £1.5m in 2023 plus the gallery expansion in Korea showing how this division will grow. Then there’s the company changing news DC alluded to recently, which I expect is something to do with Jason Lee investing £1.5m into lvcg?

Even bricklive is recovering, while reducing its costs (by a further 43%) so it’s not that hard to see how there will be a big turnaround in 2023, which when the long awaited brokers note is published we should hopefully find out about.

Meanwhile, I’m disappointed that Simple’s “greatest hits” have been deleted, like how he owned 4.3% of the company yet avoided any TR1’s on buying or selling, and had well over £300,000 invested in lvcg yet never made a single positive post on the company. Curious eh?

Yesterdays TR1 confirms that Jason Lee now holds over 8% of the company and is planning to invest more over the next few months to fund the expansion of the KPOP and StarArt divisions. That’s good IMO as not only does it show that a strategic investor has skin in the game and will be working to increase higher value of his shareholding, but it provides balance in the company to DC and with premier Miton it and others there are large blocks of the company in sticky hands that can block any special resolutions if necessary. Worth noting too that this investment is being made at a time when it really difficult to raise cash for companies. Go look at some of the absolute shockers of placings recently, including two today, one at a 27% and the other a 44% discount. Overall the free float in lvcg is less than 40% and there are some PIs with big holdings, so there won’t be much stock about. So this will move quickly if there is any buying interest IMO.

More green boxes, seems that simple needs to post day and night to cover his tracks on all the stupid stuff he has posted, like claiming to own 4.3% of the company. Guess that just confirms his status of a sad pathetic w@n ker living in fantasy land.

In addition to the 15,000 visitors to the gallery, seems that StartArt London sales are doing well too. Would, be nice if they actually updated the market on this.

https://media.umbraco.io/live-company-group/jbrhytgd/oea-post-fair-press-release.pdf

“The entire collection sold out by the penultimate day“

Do the sums on Frankfurt 22 and if they had filled the stadium for the second day, they would have made another £1.5m profit, giving £1.7m overall for the profit for this event, or £850k profit to LVCG for the event. And remember for Frankfurt 23 there are no financing costs for the event for LVCG.

It’s not unreasonable that with better advertising, a bigger brand awareness and the acts announced much earlier than last year, plus that they have fixed all the things the fans complained about, especially giving the acts more time on stage, that it will reach capacity this year.

And that’s without any sponsorship, which they didn’t get last time as it was too late and was an unproven concept, and without any streaming. You also have to add in that DC will have been negotiating a bigger cut for lvcg and much reduced operating costs from SBS for the artists.

Until the brokers note comes out and restores the financial guidance you have to actually do your own research and piece together scraps of information. But If they manage to land between 7 and 9 KPOP festivals next year then £5 million minimum actual profit from the KPOP division would not be an unreasonable forecast, probably a lot more. Then add formula E, the volvo ocean race, the efest, golf tournament and concert, plus start art. For formula E they have already said they are expecting to clear more than £1m from the management fee and fees from the partners (10% of revenue) and that’s without the 30,000 ticket sales (£3m plus). Start art forecast is £1.5 million EBIT for 2023.

To fully support the current market cap of £7 million on a P/E ratio of just 10, they would only need to make a £700,000 actual profit. You have to work out if you think they will make more or less than that next year, but it looks like Jason Lee who is investing £1.5 million likely thinks it’s more.

Given the profuse green boxes, I unfiltered Walter just to see the latest drivel, and it seems he has just dropped any pretence of actually being invested in LVCG and has gone full on trolling mode.

It’s a bit sad really. How pathetic must you life be when your only comfort is arguing with others on an anonymous bulliten board, on a share which you don’t even have any money in.

We have had the “I own 4.3% of the company” nonsense, the “it’s my sell” when it’s clearly not waffle, the “I don’t even understand what a share price is” level of stupidity as well as the “Its not from the company even although it’s actually published on their website”. These bulliten boards have always attracted the mad, the bad and the sad. It’s just rare to find a troll that’s all three.

Meanwhile, in the real world, the company has a strategic investor onboard, now an insider and CEO of Live Company Korea, who has invested £1.5 million into the company. Someone bought £96k this week, the biggest single trade I’ve seen on lvcg, and the company are openly saying they are in the very final stages on negotiating the biggest deal for expansion in their history for a KPOP European and Japanese tour, which is the division that is already demonstrably profitable (Frankfurt 22) and which is part of a global phenomenon that is looking for a bigger foothold in Europe. Add to that there’s a raft of news in other areas of the company that is overdue, including the long awaited independent brokers note that will begin to nail down what this all means in £. Until then investors have to put up with doing some actual research.

Sure there are plenty of things to pick holes in with lvcg, especially if you dwell on the past, but at a market cap of only £7 million it’s not like it’s got a valuation out of kilter with the expansion being promised. And before anyone points out that the last H1 accounts showed a loss, anyone, can go an look at those, but they also showed a revenue that was 319% up on the six months to 30 June 2021 and 27% up on the immediately preceding six months to 31 December 2021 as well as a significant reduction in the loss. The original bricklive part of the business was smashed by covid, but that is now demonstrably recovering, and 3 growing areas of the business have been added during covid, all which are in expanding areas, so the company is now 4 times larger with even greater potential. With the low cost base of the new businesses, it’s only going to take one of those ares to realise that potential for this to take off IMO.

That £96k buy likely worked during the week. Interesting that the village idiot and trolls on advfn were at their most disruptive early on in the week. Although I suspect the market muppets might be asking for a refund ;-)

For anyone wanting to do some actual research worth looking at the interview from Monday.

StartArt (non digital) launching a month long event based on a KPOP start in Seoul in December. This is the prelude to a monthly series of events.

SBS relationship remains strong (based upon existing relationship for Frankfurt 22) and want to partner with lvcg in Europe based on several shows in 2023. Returning to Seoul in 10 days time and looking to make an announcement in early December.

Going back to Japan in 8/9 days to consider offer for KPOP event in Japan in 2023.

https://www.proactiveinvestors.co.uk/companies/news/998914/live-company-says-jason-lee-boosts-investment-to-help-strategic-direction-of-kpop-and-art-divisions-998914.html

Now looking at between 7 and 9 KPOP festivals in 2023. An increasing number of StarArt events ( which shows the way to how they will meet the £1.5m EBIT target for 2023 for the StartArt division), plus the Formula E, efest , golf, cycling and Volvo ocean race in early 23. It’s looking like 2023 is going to be a very good year. No wonder they have a better quality CFO coming in and are recruiting a CEO as this is about to expand significantly IMO.

Just popped up from late yesterday.

As well as aiming to attract 350,000 plus visitors to the V&A waterfront during the ocean race in Feb, there will also be a 4 day Ocean sustainability conference

https://ocean-innovation.africa/the-event/

Ask the company where/when it’s coming. The more people that ask for it/demand it the better IMO.

Don’t disagree. Hopefully that will come with the brokers note?

https://www.fiaformulae.com/en/news/2022/october/formula-e-record-tv-audience-broadcast

The ABB FIA Formula E World Championship has grown its cumulative audience for Season 8 beyond the record-breaking levels achieved the previous season with a four-way battle for the championship, a new qualifying format and a return to racing in Asia contributing to the new highs.

ABB FIA Formula E World Championship Season 8 cumulative audience increased 20% year-on-year to 381m as live viewership grew to all-time high of 216m, up 10% on Season 7
Total viewing hours increased year-on-year by 58%
Scheduling consistency and highly competitive racing supported by a new qualifying format were key drivers for audience growth to record levels
Among a series of broadcast presentation and sporting enhancements introduced for Season 8, a new qualifying format saw all 22 drivers compete in two groups with the top four in each going into a head-to-head knockout ‘Duels’ tournament. A first for world motorsport and a popular innovation for fans, the cumulative audience for qualifying increased 49% compared to audiences for the traditional fastest-lap format in Season 7.

The biggest-ever ABB FIA Formula E World Championship calendar of 16 races in 10 world cities included a return to Asia with successful debuts in Jakarta, Indonesia, and a double-header in Seoul, South Korea, to close Season 8. The Jakarta race in June was the first Formula E race in Asia since 2019 and was the most-watched domestic race in the championship’s 100-race history with a cumulative audience of 27.6m in Indonesia.
Live viewers made up the majority of Formula E’s audience for the first time in Season 7 and that trend continued in Season 8 with a 10% increase in live audiences YOY to 216m, part of a 20% growth in total cumulative audience to 381m.

The combination of enhanced scheduling consistency and improved coverage of more competitive racing contributed to significant increases in audience engagement. Total viewing hours for Season 8 races increased by 58% compared to Season 7 and the championship enjoyed a 28% YOY increase in the average viewing duration per live race.

Across Formula E’s social and digital channels there were significant gains in video views (+165% vs. Season 7) and engagements (up 49%) as a refreshed social media content strategy came into effect.
Jamie Reigle, Chief Executive Officer, Formula E, said: “The ABB FIA Formula E World Championship is building a passionate global fanbase, establishing itself as an appointment-to-view, premium live sport.

"Millions more fans tuned in to watch last season than ever before thanks to consistent scheduling, improved broadcast presentation and sporting innovations like our game-changing qualifying format that we put in place in close collaboration with the FIA. The championship went down to the wire in Seoul with four drivers vying for the title and Stoffel Vandoorne emerging as World Champion.”

The CEO of the current “darling of AIM” bought £25,000 of shares over the last 24 hours (bringing his total skin in the game up to circa £185,000 at todays valuation) and the crowd are going wild.

Imagine if there was a company where an insider was investing £1.5 million into an AIM company. ;-)

As a warning to to anyone looking in on these bulliten boards and thinking that asimpleinvestor has any credence at all,I’ve summarised all his BS so that you can make your own mind up.

Claimed he held 4.3% of lvcg, yet there are no TR1’s for buying or selling, and even if done through the broker, there would have to be 4 x TR1s for each 1% sale, which there was none. Despite holding 4.3% which is an at least £300,000 investment in an AIM company hasn’t posted a single positive post on the company.

Claimed to be “selling” back in October when it turns out that the sells claimed were from Ranjit. Brushed over that BS when challenged, but obviously forgot that claim when making the new claim that he owned 4.3% of the company and now owns just 62k shares.

Then there’s the nonsense of not even understanding how a share price is actually calculated, claiming that “The share price is calculated by dividing the market cap by how many shares there are in issue.” Eh no simple, you get the market cap by multiplying the SP by the shares in issue not the other way around. Or that “The bid & ask price is separate to the share price and the spread is the difference between the share price and the ask price.“ eh no again simple, the share price is actually the mid point between the bid and ask. And the spread is the difference between the bid and ask.

Then we had the incident where he constantly went on about the IP challenge, even after the company had addressed it, and put out a statement about it, even claiming that the company statement wasn’t from the company at all even although it was on the company website.

That’s the trouble with lies, they keep getting bigger and the story more complicated to cover them up. But when the tide goes out you see who has been swimming naked.

It’s a frustrating wait for the brokers note LOD. The interviews indicate that they are waiting for the latest deal on the KPOP European tour to land so that those can be included in the forecast.

Not much stock around. Already up 8%.