Monday, September 13, 2021

Esports Entertainment Group, Inc. (GMBL)
Stepping Up Enhanced Revenue Spending

Esports Entertainment Group Inc is a development-stage online gambling company focused purely on esports. The company’s principal business operations include design, develop and test wagering systems.

Michael Kupinski, Director of Research, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

Quarterly preview. We believe that the company is likely to miss our original fiscal Q4 revenue and adj. EBITDA expectations, reflecting a one-time impact from a switch to Argyll’s gaming license to Malta and consolidation into Lucky Dino, which involved a new, more robust technology platform, and higher level of investment spending. We believe that the investment spend will enhance future revenue growth. The company is expected to report fiscal Q4 near September 28th.


Tweaking Q4 estimates.  We are lowering our revenue expectation from $10.5 million to $8.8 million to reflect the disruption in revenues in the quarter, lowering our Agyll revenue assumption by roughly $1.5 million. We flowed through the revenue shortfall to our Adj. EBITDA estimate, raising our loss estimate from $2.1 million to a loss of …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.