The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
Someone posted on the telegram group.
Samsung ads being seen in games in the US.
https://www.pocketgamer.biz/news/74202/wildlife-series-b-funding/
'Impressive growth
On the rise, the company founded by brothers Arthur and Victor Lazarte has seen a growth of 70 per cent per year. Furthermore, two of its mobile titles – Zooba and Tennis Clash – have hit the two billion downloads mark, while its full library sees 100 million monthly active users.'
Ads ramping up now.
Coke ads running across a number of games.
Tommy Hilfiger now.
Importantly Tennis Clash has starting to show programmatic ads. Tommy Hilfiger and others:
https://twitter.com/upto2m/status/1504393991734890499?s=20&t=L8IaxFH2bRh-VMjL825zaQ
Tennis Clash ad space is worth a lot. One of the world's most popular mobile sports games.
It's starting!
That would be great MB10. Where are you seeing that it is a single institution that has taken everything?
Lisa Hau on LinkedIn about the deal:
Our partnership with Xaxis is further evidence of the soaring demand for in-game advertising across all formats. I anticipate further transformational collaborations across the new industry in the coming 12 months.
'At the billion-dollar WPP programmatic platform Xaxis, more than 3,300 brands are reaching consumers in 47 global markets.'
Xasis is WPP's programmatic platform.
Xasis is part WPP.
Xasis is part of GroupM, which is part of WPP.
50bn annually!
https://www.groupm.com/wpp-groupm/
ABOUT GROUPM
GroupM is the world’s leading media investment company responsible for more than $50B in annual media investment through agencies Mindshare, MediaCom, Wavemaker, Essence and m/SIX, as well as the outcomes-driven programmatic audience company, Xaxis. GroupM’s portfolio includes Data & Technology (Choreograph), Investment and Services, all united in vision to shape the next era of media where advertising works better for people. By leveraging all the benefits of scale, the company innovates, differentiates and generates sustained value for our clients wherever they do business.
ABOUT WPP
WPP is a creative transformation company. We use the power of creativity to build better futures for our people, clients and communities. For more information, visit www.wpp.com. For the WPP Investor Center, please click here.
Well partners don't come much better than that!
WPP!
Great to see ads appearing in even more Bidstack games.
The latest games with ads are Racing Classics Pro:Drag race, Hyper Airways and Footballs kicks.
Coke must be spending a fairly chunky amount with Bidstack at the moment.
Azerion partnership starting to accelerate.
Ads in Spain, Holland, Germany, Sweden, Norway, Denmark, Finland, Belgium.
Samsung ads also appearing again in several games.
This is just the start. Expect Azerion to cram Bidstack’s inventory full of premium brands.
https://twitter.com/HenrySundayHere/status/1500506537038602245?s=20&t=P9MS3H0gY39KTrsTvkTZmg
https://twitter.com/HenrySundayHere/status/1500506555225198595?s=20&t=P9MS3H0gY39KTrsTvkTZmg
Share price should be 10p not 3p.
No wonder Azerion were confident to guarantee $30m of revenue. That figures will be smashed
Well the cat is out of the bag now.
Working with:
EA
Sega
Take Two
Ubisoft
Turborilla
Codemasters
Wild Life
Nordeus
Miniclip
Illusion Labs
Playgendary
Steel City
Sports Interactive
Individually, many of those is a company maker for Bidstack.
Aside for the AAA developers in the list, there are some huge mobile developers too. Look up Miniclip and Playgendary. Among the world’s largest mobile game developers.
Also confirmation that Bidstack are serving rewarded video ads! Huge money in rewarded video ads. They could already be serving these ads widely and making a lot of revenue.
Gas prices going to remain high this year:
https://www.zerohedge.com/commodities/europes-depleted-gas-storage-might-not-get-refilled-ahead-next-winter
I like to look at free cash flow.
I’ve modelled 2012 using 30kboepd, 85% gas, with c.25% of the gas hedged at a 46p average.
Opex at $16/boe (will probably be a few dollars lower), G&A of $10m and a 40% tax rate. The only thing I haven’t included is capex. I’ve also not yet updated for the few weeks downtime to Rhum.
I’ve assume $90 Brent for 2022.
The Market cap is now about $1.05bn. They have c$400m cash. So the Enterprise Value is about $650m
If the 2022 UK gas price averages 200p/therm for 2022 then I get free cash flow (post tax but not including any capex) for 2022 of $680m. So an EV to FCF ratio of under 1 times!
If the 2022 UK gas price averages 150p/therm the FCF becomes $520m and the EV/FCF ratio becomes 1.25 times.
If the 2022 UK gas price averages 100p/therm the FCF becomes $350m and the EV/FCF ratio becomes 1.85 times.
Incredible cheap even under the 100p/therm scenario, which I think is highly unlikely.
Obviously, there is potential for the average gas price to be higher than 200p/therm for 2022.
I appreciate some people have bought in at a low price and are top slicing. I’ve been buying. I think the company is phenomenal value.
There has been a significant change in the gas market and prices will be raised for several years.
Does anyone really believe that UK gas prices are going back to the longer term average of 50p anytime soon?
Gas prices were high long before Russia started gathering troops on the Ukraine border. UK prices have been over 100p since the end of July last year and over 150p since early September.
The Ukraine invasion has made matter far worse.
Europe-wide gas storage levels are at 5 year lows and countries will be looking to restock over the summer, ahead of the winter. There are EU proposal to mandate minimum gas storage levels and Germany is introducing law prescribing minimum levels. This will see high gas demand over the summer as countries fill storage.
https://www.reuters.com/business/energy/eu-wants-make-countries-fill-gas-storage-before-winter-draft-2022-02-18/
https://www.cleanenergywire.org/news/germany-prescribe-minimum-levels-gas-storages-set-30-day-coal-reserve
The market cap is £780m ($1bn).
They currently have c.£300m cash ($400m)
The Enterprise Value is c.$600m
Current prices for all traded months for the rest of 2022 are over 350p/therm.
If the price averages anything over 200p/therm for the rest of 2022 then the company will have its market cap in cash by the end of the year (taking into account 40% tax but excluding capex). I think this is now a realistic scenario and is perhaps being conservative.
Hell, even if the price crashes and averages 100p/therm for the rest of the year the company should still add c.$300m to cash, ending the year with $700m in cash vs a $1bn market cap (pre capex).
Going forward I think the gas price will average over 100p/therm in 2023 and 2044 (the average forward prices for these years are much higher). That should add another $400m to cash each year.
The company could easily afford a £2 special dividend at the end of this year and £1 in both 2023 and 204
Incredible value vs cash flows.
MB10,
Where did the 4k ticket figure for day 2 profitability come from? Cheers.
I think Azerion's involvement in these Coca Cola ads is significant.
Now that ads are starting to come through from the Azerion partnership, people will wake up to how material the Azerion deal is for Bidstack.
Bidstack's scale and reach has increased a order or magnitude now they have Azerion selling for them.
More large brands will start appearing as the partnership fully starts next week. Expect these to be plastered around social media and for the hype to get in full swing.