Gaming Firm’s Sportsbook ‘Smashes Revenue Expectations’ in October

Source: Streetwise Reports   11/10/2020

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

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