TSD Alert: $50 Million Revenue Giant Pioneers AI in Gaming, with 350+ Partners & Reaching 30 Million Users, TSX.V: ESE Gears Up for AI Product & Global Expansion

Hello Traders,

A $50 million revenue generating gaming giant is turning future business growth to its “big data and Artificial Intelligence (AI) product, Singularity.”

But this is not just another Artificial Intelligence (AI) play – this company already has a highly developed fundamental infrastructure:

with 350+ partners.
reaches 30 million users every month.
$50 million in revenues.
$15+ million in total assets.
nearly $4 million in gross profit…

and yet somehow it closed trading yesterday (Tuesday) under 10 cents per share at just 0.075 with a market cap of only $5.3 million!

Add TSX.V: ESE to the Top of Your Watchlist Right Away

Canadian Gaming Leader ESE Entertainment (TSX.V: ESE) could be one of the most overlooked publicly traded companies to land on our screens in a long time.

TSX.V: ESE is a Canadian company that posted $50 million in revenues delivering cutting-edge technology and services to the world’s leading video game developers and global brands.

And when we say the “world’s leading” we mean it:

Artificial Intelligence (AI)

ESE’s Singularity is the company’s machine learning technology: “an infrastructure collection of modules that provide solutions for collecting, processing, and sending massive quantities of information in any format.”

“Our technology opens up big query capabilities, provides real time analytics, reporting and machine learning for our customers and us.”

TSX.V: ESE may sound familiar to some of our members, it is a proven winner from last year:

  • When we initially featured ESE the company climbed high for a real 35% gain.

 

Certainly, it is always nice to revisit a big winner from the past, but perhaps a major reason for interest in ESE to be building again is a fundamental one, as operationally ESE is posting monster numbers and gearing up for major growth:

  • $50 million in revenues over last twelve months (period ended October 31, 2023)
  • Total Assets reported at $15,248,385 (period ended July 31, 2023)
  • Gross profit for TTM reported at $3.77 million

Despite these solid figures TSX.V: ESE closed at 0.075 on Tuesday and is currently showing a market cap just north of $5.36 million.

Again, $50 million in revenues, $15+ million in total assets and nearly $4 million in gross profit and TSX.V: ESE’s market cap is $5.3 million.

Wow – put all this together and it would be easy to consider TSX.V: ESE as a potentially undervalued situation.

But it gets even better.

TSX.V: ESE has announced plans to expand and to extend “its footprint into the Middle East with the planned opening of a Dubai office, emphasizing ESE’s commitment to tapping into gaming’s fastest-growing region in the world. The Middle East has seen investments from the Savvy Games Group, a company which is owned by Saudi Arabia’s Public Investment Fund (PIF), totaling nearly $40-billion, and ESE wants to leverage its expertise and services to increase sales in this region.”

The Strategic Outlook for this move was highlighted in their announcement:

  • Middle East Expansion: ESE aims to solidify its presence by providing its technology and services to customers in the region. It also aims to tap into the large-scale opportunities from events like the Esports World Cup.
  • Strengthening Partnerships: Alongside trusted partners, ESE plans to leverage its existing relationships with EMEA customers and suppliers to scale business in the region.
  • Capitalizing on Global Trends: Recognizing the influx of investment and growth in the Saudi gaming and esports ecosystem, ESE is resolute in its plans to contribute to the local ecosystem. Saudi Arabia’s bold vision resonates with ESE’s mission. Given the Kingdom’s strategic objective to amplify the gaming sector’s GDP, the symbiotic relationship between Saudi Arabia’s gaming initiatives and ESE’s advanced services can be mutually beneficial.

Before we go any further let’s step back for a moment and introduce today’s featured company, you’ll want to keep your eyes on ESE Entertainment (TSX.V: ESE) this week.

 

Today’s Mega “Under-The-Radar” Alert is
ESE Entertainment Inc. (TSX.V: ESE)

Company Website

Quote

Corporate Presentation

In their own words: “ESE is a global entertainment and technology company focused on gaming and esports. We provide a range of services to leading video game developers, publishers, and brands by providing technology, infrastructure, and fan engagement services internationally. ESE also operates its own ecommerce channels, esports teams, and gaming leagues.

“The company was founded in 2019 by Konrad Wasiela, a former professional football player. Today, ESE has grown to consist of multiple assets and world-class operators in the gaming and esports industries. Our core expertise is in bringing new users and players to video game developers, and increasing game publicity.”

View TSX.V: ESE’s complete portfolio of companies:
https://esegaming.com/ese-portfolio/

Additional recent news:

TSX.V: ESE announced they had completed a transaction in which they sold 70% of GameAddik to BlackPines Capital Partners for $9.1 million, all-cash. The remaining 30% of GameAddik will continue to be held by TSX.V: ESE.

There are two very important points to be made here and this is why we have our members focused on TSX.V: ESE.

  • $9.1 million (all-cash) is the largest injection TSX.V: ESE has ever received, which company CEO Konrad Wasiela has called “a game-changer,” enabling them to execute their strategic plan. (more on this in just a bit)

And

  • BlackPines Capital works with $multi-billion companies across the globe, concentrating on “a select number of large-scale, high-profile, growth-oriented opportunities.”

For BlackPines to consider TSX.V: ESE as a “large-scale, high-profile, growth-oriented” situation is a huge credibility boost. BlackPines would have looked very closely inside the company prior to this transaction, and it seems they’re seeing a bright future.

It can’t be overstated how significant BlackPines, which is run by the former CEO of $109 billion Priceline & Booking .com Group, could be for TSX.V: ESE.

The commitment from BlackPines was evident in the announcement as Darren Huston, CEO & Founder, stated:

“We couldn’t be more excited about our investment in GameAddik and partnership with ESE Entertainment. We have an ambitious plan to invest in and grow the business, and to help an already outstanding team deliver industry-best marketing ROIs to a growing roster of PC game industry customers.”

BlackPines Capital list of partners/clients/asset holdings includes:

  • Blackstone, the world’s largest alternative asset manager, with $1 trillion in assets under management (AUM), the NYSE company reported revenues of US$8.52 billion in 2022.
  • Allegro, Poland’s largest public company and ranked as the number one visited ecommerce shopping websites in the country, achieving a revenue increase of 68% in 2022 to over $2 billion.
  • Magento, an open-source e-commerce platform, acquired by Adobe Inc. for $1.68 billion.

The list of tier one companies that TSX.V: ESE has partnered with is as impressive as BlackPines, here’s a sample:

  • Riot Games: estimated annual revenue is currently $1.8 Billion per year
  • Epic Games: estimated annual revenue is currently $2.6 Billion per year
  • Electronic Arts: revenue for the twelve months ending June 30, 2023 was $7.583 Billion
  • Opera: estimated annual revenue is currently $228.6 Million per year
  • Ubisoft:  estimated annual revenue is currently $98.2 Million per year

It would be fair to say that the gaming and esports market is healthy and here are a few figures that support that belief:

  • Market Research Future has reported that the Gaming Market “is predicted to thrive substantially during the assessment era from 2021 to 2030 at a healthy CAGR of approximately 13.19% to attain a valuation of around USD $546.99 Billion by the end of 2030.”
  • According to Newzoo, there are 3.22 billion gamers worldwide as of 2023. However, this number is expected to rise to 3.32 billion gamers worldwide by 2024

As for Esports (according to Statista):

  • The Esports market worldwide is projected to reach a revenue of USD $4.3 billion in 2024.
  • This is expected to show an annual growth rate (CAGR 2024-2028) of 7.10%, resulting in a projected market volume of USD $5.7 billion by 2028.
  • The largest market segment in Esports market is Esports Betting, with a market volume of USD $2.5 billion in 2024.
  • The United States generates the most revenue in the Esports market, with a projected market volume of USD $1.070 billion  in 2024.
  • In terms of user base, the Esports market is expected to have a total of 924.5 million users by 2028.

And TSX.V: ESE is not simply a gaming and Esports company:

The next phase of ESE’s business growth is centered around their Big Data and Artificial Intelligence (AI) Product, Singularity.

Singularity is ESE’s machine learning technology product that creates individualized marketing profiles, which results in more efficient and profitable player acquisition campaigns.

ESE describes Singularity as “an infrastructure collection of modules that provide solutions for collecting, processing, and sending massive quantities of information in any format. It is used to optimize player acquisitions.

“Our technology opens up big query capabilities, provides real time analytics, reporting and machine learning for our customers and us.”

Why is this so significant?

Remember, ESE’s “core expertise is in bringing new users and players to video game developers, and increasing game publicity.”

ESE does this by running ad campaigns through its 350+ partners (composed of gaming websites, reviewers, social media influencers, and platforms with exposure to gamers), reaching 30 million users every month. ESE also organizes and broadcasts gaming and esports events/tournaments (to build brand awareness for its clients) and provides call center/support services to gamers of its clients.

ESE carries out ad campaigns for the tier one companies we listed above- Riot Games, Epic Games, Electronic Arts, Opera, Ubisoft, and several more. ESE is paid a fee for each user it attracts.

According to a February 2023 Analyst Report completed by Fundamental Research Corp. ESE’s Customer Acquisition Cost/CAC of US$3 is on the lower end of industry standards (US$1.20-$7.60).

And now for why ESE’s Big Data and Artificial Intelligence Product, Singularity, is so important.

Management believes their proprietary technology and data-driven approach, integrating big data, artificial intelligence, and machine learning allow them to achieve superior results.

Meaning, ESE could lower their CAC while reaching more users for video game developers- anytime a company can lower their costs while increasing their productivity it’s a good idea to pay attention.

Again, TSX.V: ESE is just 0.075 with a small $5.36 million market cap!

Based on what we have highlighted it would seem that TSX.V: ESE is positioning itself for further growth and now may be a perfect time to take a closer look.

For more information, please visit the company’s website at https://esegaming.com/ and their quote page at https://money.tmx.com/en/quote/ESE.

As always, we encourage you to conduct your own further research and always consult a professional.

Very Best Regards,

Julie, TSD

Source Links:

https://money.tmx.com/en/quote/ESE

https://esegaming.com/

https://c4n7s3v8.stackpathcdn.com/wp-content/uploads/2023/03/ESE-Corporate-Presentation-Q1b-2023.pdf

https://esegaming.com/ese-portfolio/

Https://youtube.com/watch?v=Br2xP9fzycA

https://c4n7s3v8.stackpathcdn.com/wp-content/uploads/2023/02/ESE-Entertainment-Feb-2023-Initiating.pdf

https://esegaming.com/ese-completes-sale-of-70-interest-in-gameaddik-in-an-all-cash-transaction-retaining-a-strategic-30-interest/

https://medium.com/@KristiLouis9/darren-huston-founder-and-ceo-of-blackpines-global-advisors-66333ec6298f

https://statista.com/statistics/1178898/poland-allegro-revenues-by-revenue-type/

https://esegaming.com/ese-announces-the-sale-of-a-70-interest-in-gameaddik-in-an-all-cash-transaction-retaining-a-strategic-30-interest/

https://esegaming.com/ese-subsidiary-digital-motorsports-signs-3-year-partnership-with-silverstone-museum-based-at-bgp-circuit-silverstone/

https://esegaming.com/ese-entertainment-reports-second-quarter-2023-results/

https://grandviewresearch.com/industry-analysis/video-game-market

https://www.statista.com/outlook/dmo/digital-media/video-games/worldwide

https://globenewswire.com/news-release/2023/05/13/2668290/0/en/Gaming-Market-worth-USD-546-99-Billion-growing-at-a-13-19-CAGR-by-2030-Report-by-Market-Research-Future-MRFR.html

https://www.macrotrends.net/stocks/charts/EA/electronic-arts/revenue

https://growjo.com/company/Riot_Games

https://growjo.com/company/Epic_Games

https://growjo.com/company/Opera

https://growjo.com/company/Ubisoft

https://www.tipranks.com/stocks/tse:ese/financials/income-statement

This profile is a paid ad for the company or companies mentioned herein. Do not base any investment and/or financial decision upon any of the materials found on our website or in our newsletter publication(s). The publisher of this newsletter and the website(s) associated with this alert publication and its affiliates and contractors are not registered investment or financial advisers or broker/dealers.

Disclaimer & Risk Disclosure: The disclaimer is to be read and fully understood before using our site, or joining our email list.

Please note well: TradeStreetDigest employees are not registered as an Investment Advisor in any jurisdiction whatsoever. This is a Paid Advertisement.

Not for distribution or dissemination in the United States.

DO NOT BASE ANY INVESTMENT DECISION UPON ANY MATERIALS FOUND IN THIS REPORT. We are not registered as a securities broker-dealer of an investment advisor either with the US Securities and Exchange Commission (the “SEC”) or with any state securities regulatory authority. We are neither licensed nor qualified to provide financial advice. Many of the companies communicated in our emails or website are developmental stage companies with little or no operating or trading history. The information contained in our alerts should be viewed as commercial advertisement and is not intended to be investment opinion. The report is not provided to any particular individual with a view toward their investment circumstances. The information contained in our alerts is not an offer to buy or sell securities. We distribute opinions, comments and information free of charge to individuals who wish to receive them. Our advertisements and website have been prepared for informational purposes only and are not intended to be used as a complete source of information on any particular company. An individual should never invest in the securities of any of the companies profiles based solely on information contained in our report. Individuals should assume that all information contained in the alerts about profiled companies is not trust worthy unless verified by their own independent research. Any individual who chooses to invest in any securities should do so with caution. Investing in securities is speculative and carries a high degree of risk; you may lose some of all of the money that is invested. Always research your own investments and consult with a registered investment advisor or licensed stockbroker before investing.

The profiles are a service of Orid Corporation, LLC, a marketing and advertising firm that may have been compensated. All direct and third party compensation received will be disclosed within each individual alert in accordance with section 17(b) of the nineteen thirty three Securities Act. This compensation constitutes a conflict of interest as to our ability to remain objective in our communication regarding the profiled companies.

Compensation is received in cash via bank wire transfer. We never receive compensation in shares. All compensation is disclosed in our newsletter(s) and/or on our website(s). Consideration For Services. TSD, its editor, affiliates, associates, partners, family members or contractors do not have an interest in ESE. Sponsored Companies that compensate TSD may have an interest in ESE and will sell ESE securities without notice to TSD. TSD has not been compensated for this profile. However, pursuant to a past agreement, TSD was compensated by an unaffiliated third party, Lakefront Enterprises, Inc., sixty thousand (60, 000) CAD for email, text and social marketing and awareness consulting for ESE, paid via bank wire, which has expired. Information provided here within should not be construed as financial analysis but rather as an advertisement.

Forward-Looking Statements, Certain statements in this communication that are not historical facts are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements may be identified by the use of words such as “anticipate,” “believe,” “expect,” “future,” “may,” “will,” “would,” “should,” “plan,” “projected,” “potential,” “intend,” and similar expressions. Such forward-looking statements, involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of (the “Company”) to be materially different from those expressed or implied by such forward-looking statements.

The Company’s future operating results are dependent upon many factors, including risk factors discussed in the Company’s periodic filings with the Securities and Exchange Commission, which are available for review at http://www.sec.gov . We undertake no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise. Information contained in our advertisement will contain “forward looking statements” as defined under 27A of the Securities act 1933 and Section twenty one B of the Securities Exchange’s Thirty Four Act. Subscribers are cautioned not to place undue reliance upon these forward looking statements. These “forward looking statements” are subject to a number of known and unknown risks and uncertainties outside our control that could cause actual operations or results to differ materially from those anticipated. Factors that could affect performance include, but are not limited to, those factors that are discussed in each profiled company’s most recent reports or registration statements filed with the SEC. You should consider these factors in evaluating these forward looking statements included in the advertisement and not place undue reliance upon such statements.

We are committed to providing factual information on the companies that are profiled. However, we do not provide any assurances as to the accuracy or completeness of the information provided, including information regarding a profiled company’s plans or ability to effect any planned or proposed actions. We have no first-hand knowledge of any profiled company’s operations and therefore cannot comment on their capabilities, intent, resources, nor experience and we make no attempt to do so. Statistical information, dollar amounts, and market size data was provided by the subject company and related sources which we believe to be reliable. To the fullest extent of the law, we will not be liable to any person or entity for the quality, accuracy, completeness, reliability, or timeliness of the information provided in the alert, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information we provide to any person or entity (including, but not limited to ,lost profits, loss of opportunities, trading losses, and damages that may result from any inaccuracy or incompleteness of this information).

Third Party Web Sites and Information TradeStreetDigest and/or our newsletters may provide hyperlinks to third party websites or access to third party content. TradeStreetDigest does not control, endorse, or guarantee content found in such sites. You agree that TradeStreetDigest and it’s owner Orid Corporation, LLC are not responsible for any content, associated links, resources, or services associated with a third party site. You further agree that TradeStreetDigest and it’s owners shall not be liable for any loss or damage of any sort associated with your use of third party content. Links and access to these sites are provided for your convenience only.

We encourage you to invest carefully and read investment information available at the websites of the SEC at www.sec.gov and FINRA at www.finra.org .

TradeStreetDigest Newsletter: TradeStreetDigest Newsletter is published as a copyright publication of TradeStreetDigest.

TradeStreetDigest’s electronic media, including website, newsletter, text messages, social media and/or push notifications, are for Canadian residents only.

Not for distribution or dissemination in the United States.

No Guarantee as to Content: Although TSD attempts to research thoroughly and present information based on sources we believe to be reliable, there are no guarantees as to the accuracy or completeness of the information contained herein. Any statements expressed are subject to change without notice. It may contain errors and you should not make any investment decisions based on what you have read on here. TSD, its associates, authors, and affiliates are not responsible for errors or omissions. By accessing the site and receiving this email, you accept and agree to be bound by and comply with the terms and conditions as set out herein. If you do not accept and agree to the terms you should not use the TradeStreetDigest sites or accept this email.

Consideration for Services: TSD, it’s editor, affiliates, associates, partners, family members, or contractors may have an interest or position in the featured companies, as well as sponsored companies which compensate TSD as such our opinions are biased. We may hold positions in and trade these stocks of the companies we profile and as such our opinions are biased. TSD and its’ owner and affiliates/associates may buy/sell and trade the featured companies from time to time. TSD if often paid by the companies. Thus, multiple conflicts of interest exist. Therefore, information provided here within should not be construed as a financial analysis but rather as an advertisement. Consideration For Services. TSD, its editor, affiliates, associates, partners, family members or contractors do not have an interest in ESE. Sponsored Companies that compensate TSD may have an interest in ESE and will sell ESE securities without notice to TSD. TSD has not been compensated for this profile. However, pursuant to a past agreement, TSD was compensated by an unaffiliated third party, Lakefront Enterprises, Inc., sixty thousand (60, 000) CAD for email, text and social marketing and awareness consulting for ESE, paid via bank wire, which has expired. Information provided here within should not be construed as financial analysis but rather as an advertisement.

Conduct your own due diligence: The author’s views and opinions regarding the companies featured in report(s) are his/her own views and are based on information that he/she has researched independently and has received, which the author assumes to be reliable. You should never base any buying/selling/trading decisions off of our emails, newsletter, website, videos or any of our published materials. TSD aims to provide information and often stock ideas but are by no means recommendations. The ideas and companies featured are highly speculative and you could lose your entire investment – consult a licensed financial advisor if you are considering investing in any of the featured companies. Subscribers/readers are encouraged to conduct their own research and due diligence. The companies mentioned are high risk and considered penny stocks that contain a high risk of volatility, therefore consult your investment advisor and do your own due diligence before purchasing. Never base any investment decision on information contained from our emails, newsletter, website, videos or any of our published materials.

No Recommendation to Purchase or Sell Securities: TSD is not a registered broker dealer, investment advisor, financial analyst, stock picker, investment banker or other investment professional. TSD is intended for informational, educational and research purposes only. It is not to be considered as investment advice. No statement or expression of any opinions contained in this report constitutes an offer to buy or sell the shares of the companies mentioned herein.

Links: TSD may contain links to related websites for stock quotes, charts, etc. TSD is not responsible for the content of or the privacy practices of these sites. Information contained herein was extracted from public filings, profiled company websites, and other publicly available sources deemed reliable. Information in this report was taken on or before writing and dissemination and may not be updated. Do you own due diligence as information and events can and do change. Published reports may reference company websites or link to company websites and we disclaim and responsibility for the content and accuracy of any such information or website.

Release of Liability: By reading and/or watching videos by TSD, you agree to hold TSD, its associates, sponsors, affiliates, and partners harmless and to completely release them from any and all liabilities due to any and all losses, damages, or injuries (financial or otherwise) that may be incurred.

Forward Looking Statements Except for statements of historical fact, certain information contained herein constitutes forward-looking statements. Forward looking statements are usually identified by the use of certain terminology, including “will”, “believes”, “may”, “expects”, “should”, “seeks”, “anticipates”, “has potential to”, or “intends’ or by discussions of strategy, forward looking numbers or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results or achievements to be materially different from any future results or achievements expressed or implied by such forward-looking statements. Forward-looking statements are statements that are not historical facts, and include but are not limited to, estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to the effectiveness of the Company’s business model; future operations, products and services; the impact of regulatory initiatives on the Company’s operations; the size of and opportunities related to the market for the Company’s products; general industry and macroeconomic growth rates; expectations related to possible joint and/or strategic ventures and statements regarding future performance. TradeStreetDigest does not take responsibility for the accuracy of forward looking statements and advises the reader to perform their own due diligence on forward looking numbers or statements.

Get A Free Investor Package
DON’T MISS THE OPPORTUNITY TO JOIN OUR MARKET SUMMARY REPORT FOR A LIMITED TIME

By submitting this form on our website, you agree that we may collect and use your personal information for marketing, and for other purposes as set forth in our privacy policy, which we encourage you to review.