MIAMI, Nov. 10, 2022 (GLOBE NEWSWIRE) — As previously announced, Motorsport Games Inc. (NASDAQ: MSGM) (“Motorsport Games” or the “Company”) confirmed today that the 1-for-10 reverse stock split of the Company’s Class A and Class B common stock became effective as of 12:01 a.m. EST on November 10, 2022 (the “Effective Time”).
Motorsport Games effected the reverse stock split by filing a charter amendment with the Delaware Secretary of State. The reverse stock split was previously approved by the Company’s Board of Directors and stockholders pursuant to Sections 228 and 242 of the Delaware General Corporation Law.
The Company’s Class A common stock began trading on the NASDAQ on a split-adjusted basis when the market opened today, November 10, 2022, under a new CUSIP number, 62011B 201.
As a result of the reverse stock split, each 10 shares of the Company’s Class A and Class B common stock issued and outstanding immediately prior to the Effective Time were automatically combined into 1 share of Class A common stock and Class B common stock, respectively, subject to the elimination of fractional shares, as described below.
The same 1-for-10 reverse stock split ratio was used to effect the reverse stock split of both Motorsport Games Class A and Class B common stock, and accordingly, all stockholders were affected proportionately. The reverse stock split reduced the Company’s issued and outstanding shares of common stock from approximately 11,673,587 shares of Class A common stock and 7,000,000 shares of Class B common stock to approximately 1,167,358 and 700,000 shares, respectively.
The number of shares of Class A common stock subject to the Company’s outstanding employee and director stock options, as well as the relevant exercise price per share, will be proportionately adjusted to reflect the reverse stock split. Accordingly, the approximately 821,962 outstanding stock options will be reduced to approximately 82,196 outstanding stock options. The number of shares authorized for issuance under the Company’s stock plan will also be reduced from 1,000,000 shares of Class A common stock to 100,000 shares of Class A common stock using the same 1-for-10 split ratio.
The Company has notified NASDAQ that the Company is not in compliance with the Nasdaq Listing Rules requiring minimum of 500,000 publicly held shares.
About Motorsport Games:
Motorsport Games, a Motorsport Network company, is a leading racing game developer, publisher and esports ecosystem provider of official motorsport racing series throughout the world. Combining innovative and engaging video games with exciting esports competitions and content for racing fans and gamers, Motorsport Games strives to make the joy of racing accessible to everyone. The Company is the officially licensed video game developer and publisher for iconic motorsport racing series across PC, PlayStation, Xbox, Nintendo Switch and mobile, including NASCAR, INDYCAR, 24 Hours of Le Mans and the British Touring Car Championship (“BTCC”), as well as the industry leading rFactor 2 and KartKraft simulations. rFactor 2 also serves as the official sim racing platform of Formula E, while also powering F1 Arcade through a partnership with Kindred Concepts. Motorsport Games is an award-winning esports partner of choice for 24 Hours of Le Mans, Formula E, BTCC, the FIA World Rallycross Championship and the eNASCAR Heat Pro League, among others. Motorsport Games is building a virtual racing ecosystem where each product drives excitement, every esports event is an adventure and every story inspires.
FORWARD-LOOKING STATEMENTS
Certain statements in this press release which are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are provided pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as “continue,” “will,” “may,” “could,” “should,” “expect,” “expected,” “plans,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” and similar expressions are intended to identify such forward-looking statements. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Motorsport Games and are difficult to predict. Examples of such risks and uncertainties include, without limitation, unexpected developments with respect to the reverse stock split, including, without limitation, future decreases in the price of the Company’s Class A common stock whether due to, among other things, the announcement of the reverse stock split, the Company’s inability to make its Class A common stock more attractive to a broader range of institutional or other investors. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in Motorsport Games’ filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2021, its Quarterly Reports on Form 10-Q filed with the SEC during 2022, as well as in its subsequent filings with the SEC. Motorsport Games anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Motorsport Games assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Motorsport Games’ plans and expectations as of any subsequent date.
Website and Social Media Disclosure:
Investors and others should note that we announce material financial information to our investors using our investor relations website (ir.motorsportgames.com), SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media and blogs, to communicate with our investors and the public about our company and our products. It is possible that the information we post on our websites, social media and blogs could be deemed to be material information. Therefore, we encourage investors, the media and others interested in our company to review the information we post on the websites, social media channels and blogs, including the following (which list we will update from time to time on our investor relations website):
Websites
Social Media
motorsportgames.com
Twitter: @msportgames & @traxiongg
traxion.gg
Instagram: msportgames & traxiongg
motorsport.com
Facebook: Motorsport Games & traxiongg
LinkedIn: Motorsport Games
Twitch: traxiongg
Reddit: traxiongg
The contents of these websites and social media channels are not part of, nor will they be incorporated by reference into, this press release.
Report offers unparalleled insights into audience consumption of gaming and esports content, which continues to attract the most difficult demographic for companies to access
Insights highlight unique, untapped media activation opportunities as engagement continues to increase within the industry
NEW YORK, NY / ACCESSWIRE / November 8, 2022 / Video gaming and esports live streaming analytics company, Stream Hatchet, a wholly-owned subsidiary of Engine Gaming and Media, Inc. (GAME) (“Engine” or the “Company”) (NASDAQ:GAME)(TSXV:GAME), today announced that it has published its Video Game Streaming Trends Third Quarter 2022 Report. This essential read provides an in-depth study on the current state of the live streaming and video games industry, offering unparalleled insights into the performance of the industry, as well as top performing creators, games, releases and more. Importantly, these insights highlight the opportunity to tap into an audience increasingly hard to reach for brands.
The Stream Hatchet team works with a consortium of industry-leading analysts and business leaders to understand and report on key trends related to the impact of live streaming audiences on gaming creators, esports and the broader video games industry.
Key findings include:
Viewership is nearly double pre-pandemic levels. Additionally, esports viewership is up 40% year-over-year compared to Q3 2021 last year; the industry has seen consistent growth over the last 4 years.
Facebook Gaming lost meaningful marketing share in Q3 ‘22, dropping from 14% in Q3 ‘21 to 5%. Amazon-owned Twitch continues to increase its market share to 72%, holding a steady command of the streaming landscape, while YouTube Gaming grew modestly to 15%, reclaiming its second largest market share position.
VTubers (Virtual YouTubers), a term to describe virtual avatars that stream content on platforms like YouTube and Twitch, continue to grow in live streaming now representing 50% of the top female streaming creators in Q3. The top 10 VTubers grew an average of 30% in Q3 2022 as compared to Q2 2022.
Gambling live streaming viewership on Twitch hit its peak in Q3 2022. Since, the platform announced a ban on streaming unlicensed gambling sites in the U.S. The ban went into effect in October, and Stream Hatchet will continue to monitor the impact into Q4 2022.
“The collection of this data is extremely valuable as it not only illustrates Stream Hatchet’s ability to provide market leading data across the video game and live-streaming landscape, but also offers marketers, researchers, and analyst actionable insights on how best to reach the 18- to 35-year-old demographic, which continues to be increasingly difficult to reach,” said Eduard Monstserrat, CEO at Stream Hatchet. “As brands strategize on how to connect with this hard-to-reach demographic, they are able to leverage our insights to better understand the top performing streamers and media properties. We power insightful, informed decisions leading to innovation and growth through the aggregation of dynamic, granular data.”
About Stream Hatchet Stream Hatchet is the market leader in live-streaming viewership data analytics for the world’s leading video game streaming platforms. Stream Hatchet provides deep insights to leading brands, creator networks, esports leagues, game publishers, and other businesses measuring the impact of video game live streaming. Stream Hatchet is a wholly-owned subsidiary of Engine Gaming and Media.
About Engine Gaming and Media, Inc. Engine Gaming and Media, Inc. (NASDAQ:GAME) (TSXV:GAME) provides unparalleled live streaming data and social analytics, influencer relationship management and monetization, and programmatic advertising to support the world’s largest video gaming companies, brand marketers, ecommerce companies, media publishers and agencies to drive new streams of revenue. The company’s subsidiaries include Stream Hatchet, the global leader in gaming video distribution analytics; Sideqik, a social influencer marketing discovery, analytics, and activation platform; and Frankly Media, a digital publishing platform used to create, distribute, and monetize content across all digital channels. Engine generates revenue through a combination of software-as-a-service subscription fees, managed services, and programmatic advertising. For more information, please visit www.enginegaming.com.
NEW YORK, NY / ACCESSWIRE / November 7, 2022 / Engine Gaming and Media, Inc. (“Engine” or the “Company”) (NASDAQ:GAME)(TSXV:GAME),a data-driven, gaming, media and influencer marketing platform company, today announced that it will issue a press release promptly after the market close on Tuesday, November 29, 2022, summarizing its financial results for the fiscal fourth quarter of 2022 ended August 31, 2022. The Company will also host a conference call the same day at 4:30 p.m. Eastern Time to discuss its financial results in further detail. The call will conclude with Q&A from participants.
Please dial in at least 10 minutes before the start of the call to ensure timely participation.
A playback of the call will be available through December 6, 2022, on Engine Gaming and Media, Inc.’s Investor Relations website at ir.enginemediainc.com
About Engine Gaming and Media, Inc.
Engine Gaming and Media, Inc. (NASDAQ:GAME)(TSXV:GAME) provides unparalleled live streaming data and social analytics, influencer relationship management and monetization, and programmatic advertising to support the world’s largest video gaming companies, brand marketers, ecommerce companies, media publishers and agencies to drive new streams of revenue. The company’s subsidiaries include Stream Hatchet, the global leader in gaming video distribution analytics; Sideqik, a social influencer marketing discovery, analytics, and activation platform; and Frankly Media, a digital publishing platform used to create, distribute, and monetize content across all digital channels. Engine generates revenue through a combination of software-as-a-service subscription fees, managed services, and programmatic advertising. For more information, please visit www.enginegaming.com.
Cautionary Statement on Forward-Looking Information
This news release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Engine to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. In respect of the forward-looking information contained herein, Engine has provided such statements and information in reliance on certain assumptions that management believed to be reasonable at the time. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements stated herein to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Accordingly, readers should not place undue reliance on forward-looking information contained in this news release.
The forward-looking statements contained in this news release are made as of the date of this release and, accordingly, are subject to change after such date. Engine does not assume any obligation to update or revise any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf, except as required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Company Contact:
Lou Schwartz 647-725-7765
Investor Relations Contact:
Shannon Devine MZ North America Main: 203-741-8811 GAME@mzgroup.us
The Consequences of this Year’s Voting Should Create Opportunity for Investors
Once inconceivable in most voting districts throughout the U.S., ballots across the country this year will ask voters to decide on gambling measures, drug laws, and extra taxes based on defined demographics. While this is of interest to investors as it shows how trends are forming or continuing and can point to more potential for growth. Of the 130 ballot measures being decided upon on Tuesday, many will alter spending patterns and bolster industries.
What’s Being Decided Upon
Each year a number of states, including Maryland and Arkansas, are asking voters to decide upon legalizing recreational marijuana. Fully five states could move toward ending the use of involuntary prison labor. Nebraska and Nevada are asking voters if they should increase the minimum wage statewide. Gambling, firearms, and immigration are also the subject of state-level referendums.
A proposition in California would legalize online sports betting in that large potential market. Gaming companies, including DraftKings (DKNG) and FanDuel (DUEL) have poured nearly $160 million into the measure. It is not expected to pass, if it does, the news may cause a rally in these and other online gambling companies. Over $375 million has been spent by supporters and those against this measure.
Also being decided by California’s voters is a proposition that would raise taxes on personal incomes of $2 million or more. The revenue would be set aside to fund the state’s electric-vehicle production and help prevent wildfires. This is a very contentious measure that pit many from the same political party against each other.
In general environmental groups and companies perceived to benefit from a quicker evolving EV infrastructure support the “yes” campaign. Governor Newsom, and the California Teachers Association, a powerful state union, have joined business groups to oppose the measure, saying it would benefit a select number of large corporations as they transition to electric vehicles.
Recreational weed in Maryland? The pollsters seem to think it stands a good chance of passing. There are four other states (Arkansas, Missouri, North Dakota and South Dakota) where recreational cannabis is also on the ballot, those outcomes won’t be known until after the votes are counted.
To date, 19 states and the District of Columbia have legalized the adult recreational use of marijuana. Colorado could become the second state behind Oregon to legalize the personal use of psilocybin, the active ingredient in psychedelic mushrooms and other plant-based hallucinogens.
Massachusetts voters get to decide if they raise their income taxes by 4% if they have personal incomes of $1 million or more. This would leave the total rate for that bracket to 9%. Should this pass and bring in additional funds, they are earmarked for education and transportation.
Voters in five states will weigh whether to explicitly outlaw involuntary servitude as part of the punishment for a crime. Alabama, Louisiana, Oregon, Tennessee, and Vermont will all consider these questions on the topic; there is a growing movement to change the 13th Amendment so it no longer allows slavery as a form of criminal punishment. This could potentially benefit the industry in these states.
On immigration, Ohio voters are considering whether to ban all local governments from allowing noncitizens to vote. San Francisco and New York have passed laws allowing noncitizens to vote for local offices and ballot measures. These face legal challenges.
Elsewhere, ballot measures will ask voters whether to extend certain benefits to immigrants in the country illegally, including the ability to obtain a driver’s license in Massachusetts and pay in-state college tuition in Arizona.
Take Away
They say elections have consequences. As various states elect to adopt or deny changes in the running of their state, investors may be able to position themselves to benefit from trends, changes, and additional funds being made available.
Internet and Digital Media stocks declined for the fourth consecutive quarter in a row. It wasn’t all bad, as two of Noble’s Internet and Digital Media Indices outperformed the broader market (which we define as the S&P 500). Noble’s Ad Tech (+7%) and eSports & iGaming (+7%) Indices each finished up for the quarter, and significantly outperformed the S&P 500 Index in the process, which decreased by 5% in 3Q 2022. These two sectors also materially outperformed Noble’s other Internet & Digital Media subsectors, including Noble’s Digital Media Index (-10%); Social Media Index (-15%) and MarTech Index (-16%).
Noble Indices are market cap weighted, and we attribute the relative strength of the Ad Tech Index to The Trade Desk (TTD), the Ad Tech sector’s largest market cap company, whose shares were up 42% during the quarter. Other notable performers were Digital Media Solutions (DMS; +73%) which announced a deal to be taken private, and Zeta Global (ZETA; +46%), whose 2Q results significantly exceeded guidance. Despite the relative strength of the sector, returns were not broad-based: only 9 of the 23 stocks in the Ad Tech sector were up during the quarter.
The relative strength of Noble’s eSports and iGaming sector was also driven by the largest cap stocks in the sector. Shares of Draft Kings (DKNG) increased by 30% while shares of Flutter Entertainment (ISE:FLTR), the owner of FanDuel, increased by 17%. Shares of sports betting stocks have been battered this year as investors have become skeptical of the time it might take for these companies to reach profitability amidst a backdrop of a slowing economy and consumer propensity to spend.
Year-to-date, FLTR shares are down 19% while DKNG shares are down 45%. Shares are down even more relative to their highs reached in 4Q 2020. Like the Ad Tech sector, the eSports & iGaming sector’s relative strength was not broad-based: only 4 of the 16 stocks in this sector were up during the third quarter, and all of stocks in the sector are down year-to-date.
The worst performing sector was the MarTech sector, which is also the least profitable sector, which likely explains the sector’s underperformance. Only 4 of the 24 companies we monitor in this sector generate positive EBITDA, and investors migrated away from unprofitable growth stocks towards more profitable companies or defensive sectors that might withstand a recession better. Investors would clearly like to see companies in this sector accelerate their path to profitability, and most companies in the sector are responding accordingly. To be fair, some of the companies that aren’t EBITDA positive do generate positive cash flow from operations, which is a quirk of SaaS software accounting. Of the two dozen companies in this sector, the only stock that was up during the quarter was Harte-Hanks (HHS), whose shares increased by 68%. HHS continues to generate improved operating results while lowering its debt and pension obligations.
MarTech stocks have also been victims of their own success. Earlier this year the group traded at average revenue and EBITDA multiples of 8.5x and 70.8x, respectively. Today the same group trades at average revenue and EBITDA multiples of 4.5x and 30.1x, respectively. Stocks like Shopify (SHOP), and Hubspot (HUBS) entered the year trading at 22.2x and 14.7x 2022E revenues, respectively, and now trade at 5.3x, and 7.7x, respectively. Some of this appears to be a Covid-related hangover: when Covid hit, retail companies needed to emphasize their online channels, and companies like Shopify benefited. As consumers return to stores, growth has moderated. Shopify aside, the broader message investors seem to be sending is that recurring revenues are great, but not if they are paired with EBITDA losses at a time when economy appears to be heading into a potential recession.
M&A Continues to Hold Up Well Despite Macro Headwinds
Overall, we are impressed with the resiliency of the M&A marketplace in the Internet & Digital Media sectors. Despite a background that includes public equity market volatility, Fed rate hikes, persistent inflation, contractionary monetary policy, and geopolitical conflict, the M&A marketplace has held up relatively well, all things considered. Noble tracked 163 transactions in the third quarter of 2022 in the TMT sectors we follow, a 9% increase compared to the third quarter of 2021, when we tracked 150 deals, and 6% sequential slowdown compared to 2Q 2022, when we tracked 174 transactions. Year-to-date, the number of M&A transactions is up 7% vs. the year ago period, with 516 announced transactions this year compared to 483 transactions announced through the end of last year’s third quarter.
The real difference between 2022 and 2021 is the dollar value of transactions. Total deal value in 3Q 2022 fell by 36% to $28.4 billion, down from $44.1 billion in 3Q 2021. On a sequential basis, the $28.4 billion in deal value represents a 70% decrease from 2Q 2022 levels of $94.5 billion, nearly half of which reflects Elon Musk’s $46 billion offer to acquire Twitter (TWTR).
In looking at the M&A trends in the chart on the previous page, the biggest change is not the number of deals, but primarily the number of mega-deals. There was only one transaction in 3Q 2022 that was greater than $10 billion dollars: Adobe’s $19.4 billion acquisition of Figma, a collaborative all-in-one design platform. This decline in larger deal activity suggests acquirers are becoming more cautious about making big bets in the current environment or it could also mean that arranging for financing to close on larger deals is becoming more challenging. No doubt the cost to incur debt to close on transactions today are higher than they were just a few months ago, which lowers the return on debt financed M&A transactions. Referencing the Twitter deal again, according to media reports, Apollo Global Management and Sixth Street Partners, which had agreed to provide financing for the Twitter deal when it was first announced in April, are no longer in talks with Elon Musk to provide financing.
From a deal volume perspective, the most active sectors we tracked were Marketing Tech (44 deals), Digital Content (43 deals) and Agency & Analytics (28 deals) and Information (25 deals). From a deal value perspective, the largest transaction was Adobe’s nearly $20 billion acquisition of Figma, a collaborative design software company. Other active sectors were Marketing Tech ($4.9 billion), Information ($1.1 billion, and Digital Content ($1.1B).
Video Game M&A Declines Precipitously
For the last several quarters we have noted how strong M&A activity was in the current quarter. Perhaps the biggest surprise of the third quarter M&A analysis was the steep drop in M&A in North America in the video gaming sector. Interest in the video gaming sector exploded at the onset of the pandemic as work form home edicts resulted in less commuting time and more time playing video games. As the pandemic has subsided and consumers return to work, the sector has faced difficult comparions, and growth has been challenged.
As shown in the chart below, over the last several quarters, the sector had averaged 21 deals per quarter and $18+ billion in deal value. In the third quarter, there were only 11 announced transactions, and only one with a transaction price announced, resulting in just $3 million of deal value. Perhaps there is some consolation in that the second largest transaction in 3Q 2022 was a gaming related transaction: Unity Software’s agreement to buy IronSource Ltd, a lead generation platform for in-game advertising, for $4.4 billion.
While we expect M&A transactions to moderate given the difficult economic backdrop and an increase in the cost of financing transactions, we expect M&A marketplace to remain resilient. In our discussions with management teams in Internet & Digital Media sectors, we are struck by how many companies believe that industry consolidation is either beneficial or necessary. Scale is widely seen as a panacea to potential slowing or declining revenue trends.
iGaming
The following is an excerpt from a recent note by Noble’s Media Equity Research Analyst Michael Kupinski
The past year has been tough on the iGaming industry. The Noble iGaming Index is down nearly 54% versus a negative 17% for the general market, as measured by the S&P 500 Index. In the latest quarter, the iGaming stocks seemed to have stabilized, up 2% versus a continued general market decline, down 5% for the general market. Interestingly, the iGaming sector was the best performing sector among the Entertainment and Esports sectors, which were up a modest 1% and down 38%, respectively.
The shares of Codere Online (CDRO) could not fight the headwinds of the industry-wide selling pressure. CDRO shares dropped 70% from its post de-SPACing in December 2021. The weakness in the shares has been in spite of the company executing on its growth strategy as planned and maintaining its fundamental pace to meet full-year guidance. In the latest quarter, the shares drifted lower (-4%) versus the industry which increased 2%.
The poor performance of the iGaming industry in many respects is due to the developmental nature of the industry. Many of the companies included in the Noble iGaming index do not generate positive cash flow, with balance sheets supporting growth investment. Certainly, there will be a shake-out of players in the industry that do not have the financial capability to invest for growth, but we believe that Codere Online is one of the survivors.
Although the company is not yet cash flow positive, its operations in Spain generated its highest quarterly cash flow since Q2 2020. Adj. EBITDA in Spain was $3.6 million, enough to offset 87% of the $4.1 million adj. EBITDA loss from the company’s operations in Mexico. Interestingly, the marketing restrictions in the country came with a silver lining of lower competition. This is because the restrictions make it harder for newer operators to establish their brands in the country. Additionally, the lower marketing costs contributed to the strong cash flow generation. Notably, management expects similar cash flow generation going forward for the Spanish operations. We view the situation in Spain favorably as the consistent cash flow profile will help fund the expansion in Latin America and have a mitigating impact on the company’s cash burn.
eSports
The Esports industry had a difficult year and a difficult quarter in terms of stock performance. The horrible stock performance does not reflect the overall industry trends. Video gaming is still on the rise. It is estimated that there are 2.7 billion gamers worldwide, expected to achieve an estimated 3.0 billion gamers in 2023, based on Newzoo’s numbers. The video game market is expected to reach $159.3 billion this year and grow to $200.0 billion in 2023. So, what about the Esports industry? Esports viewership was elevated during the Covid lockdowns, with viewership significantly higher. Viewership trends are expected to increase even from the elevated 2020 levels to over 640 million viewers in 2025.
TRADITIONAL MEDIA COMMENTARY
The following is an excerpt from a recent note by Noble’s Media Equity Research Analyst Michael Kupinski
Overview
Downward trends, but some bright spots
Traditional Media stocks have had tough sledding this year. All of Noble’s Traditional Media Indices have declined over the past 12 months and each have underperformed the general market. The downward spiral seemed to have moderated somewhat in the third quarter.
Notably, during the third quarter, many of the stocks had a very nice bounce before resuming a downward trend. At one point in the latest quarter, stocks were up as high as 30% from the second quarter end. It is important to note that only the Publishing stocks outperformed the general market in the latest quarter.
Broadcast Television
Will Political Carry The Quarter?
Noble’s TV Index dropped 10% in the third quarter, underperforming the broader market (-5%) As we indicated in our previous quarterly report, we believe that there would be a trading opportunity in media stocks. The latest quarter stock performance indicated that. Many of the TV stocks had a strong performance from the end of the second quarter (June 30) to highs achieved in August. Many of the TV stocks increased a strong 25% on average. It is instructive to know that E.W. Scripps had the largest advance from June 30 lows, up 31% to highs achieved August 16. When the industry is in favor, the shares of E.W. Scripps tends to outperform its industry peers. The shares of Entravision (EVC) were the next best performing within the quarter, up 30%, before trading lower and ending down 12%.
TV stocks were challenged by macro-economic pressures such as inflation, the rising cost of borrowing, and a Fed determined to curb inflation by slowing the economy. In the end, interest rate increases by the Fed curbed enthusiasm for TV stocks and the Noble TV Index ended the third quarter down.
The average television company reported 11% revenue growth in the latest quarter. Most broadcasters were very optimistic about political advertising, with some raising forecasts to be near the levels of the Presidential election, a highwater mark. We would note that Entravision had the highest revenue performance in the quarter, up 24%, as the company continues to benefit from its transition toward faster growth digital advertising, which now accounts for over 80% of its total company revenues.
EBITDA margins were healthy, with the average margin for the industry at 25.5%. It is notable to mention that Entravision’s margins appear to be significantly below that of the industry at 10%. Its digital advertising business is a rep firm business, and, as such, the company reports revenues on a net basis and not gross revenues. While a rep firm business tends to be a lower margin business, the accounting treatment for rep revenues gives the appearance of very low margins. The company is in a strong cash flow and free cash flow position.
Most companies will be reporting third quarter financial results in the first two weeks in November. We believe that the third quarter will reflect an influx of political advertising, even though the lion share of the political advertising likely will fall in the fourth quarter. Consequently, we believe that the third quarter revenue growth will be better than the second quarter, showing some acceleration. With signs of weakening national advertising, and a likely weakening local advertising environment in some larger markets, broadcasters are looking forward toward Q4 political advertising as an offset. Many broadcasters indicated that political advertising may be at record levels in 2022, even higher than the Presidential election year of 2020. Political advertising, however, is not usually evenly spent across all markets. As such, there may be winners and some disappointment.
Investors are not encouraged to buy a Television broadcaster on the basis of the upcoming fourth quarter political advertising influx. There are broader issues at play, like cord cutting, slowing retransmission revenue growth, and the prospect for a weakening economy. We believe broadcasters with minimal emphasis on national advertising, a larger focus on small to medium size markets and local advertising, are best positioned to weather an economic downturn. We also like companies that do not have high debt leverage. In addition, we like diversified companies that can benefit from cord cutting, like E.W. Scripps, or have diversified revenue streams and large fast growing digital businesses, like Entravision.
Broadcast Radio
Polishing its tarnished image
One of the epic fails of the radio industry has been Audacy (AUD), once one of the leadership companies in the industry. AUD shares are down a staggering 95% from highs in March 2021. The poor stock performance reflects the poor revenue and cash flow performance and high debt levels at the company. Recently, the company announced that it plans to sell some of its prized assets, including its podcasting business, Cadence 13, in an effort to more aggressively pare down debt.
While Audacy struggles, there are emerging leaders in the industry, many that are not focused on its radio business. The average radio revenue grew 8.9%. Companies that were at the top of the list of revenue growth had diversified revenue streams. Townsquare Media (TSQ) was the best performer, with Q2 revenue growth of 13.6%. We believe that Townsquare also benefits from significantly lower national advertising and concentration on less cyclical larger markets. Other diversified companies that performed better than the lower growth companies in the group were Salem Media and Beasley Broadcasting. Salem Media has diversified into content creation and digital media and Beasley recently accelerated its push into Digital Media. Separately, Beasley recently announced a station swap with Audacy, which will enhance its position in with its four existing stations in Las Vegas.
On the margin front, Townsquare Media also was among the leaders in the industry. Notably, Townsquare Media’s digital business carries margins similar to its radio businesses, near 30%. As such, its investments in Digital Media are not depressing its total company margins. Townsquare’s Q2 adj. EBITDA margins were 27%, well above that of the larger industry peers like iHeart (25%), Cumulus Media (19%), and Audacy (12%).
In looking forward toward the upcoming third quarter results, which will be released in coming weeks, we believe that the effects of rising inflation and weakening economy will start to show. Many of the larger broadcasters which focus on larger markets, have national network business, may disappoint. In addition, we believe that there will be spotty political advertising performances. In our view, the resulting potential weakness in the stocks may create an opportunity to more aggressively accumulate or establish positions.
Radio stocks largely mirrored the performance of the TV industry, falling 9% in the third quarter. Last quarter we pointed out that large industry players such as Audacy and iHeart had an outsized negative impact on the market cap-weighted index. This was due to the stocks being downgraded by a Wall Street firm on the basis of high leverage in a time of recession.
However, there are several broadcasters in the radio industry with improving leverage profiles. Furthermore, we believe that in a time when traditional radio companies are making a transition to more digitally based revenue sources, investors would do well to differentiate among them on that basis as well. In our view, certain companies are ahead of peers in the digital transformation and are better shielded from certain fundamental headwinds that have traditionally plagued radio broadcasters in prior recessions, such as Townsquare Media (TSQ), Salem Media (SALM), and Beasley Broadcasting (BBGI).
Publishing
Once a leader, now a laggard
It is hard to believe that Gannett was once a $90 stock and held a record for one of the longest strings of quarterly earnings gains in the S&P 500 Index. The shares are down 80% from year earlier highs to near $1.37. For some anti newspaper investors, this is a “told you so” moment. But, this view missed notable exceptions, like the New York Times, which seemed to transition more quickly toward digital revenues. There are publishers that are set apart from the weak trends at Gannett and are on a favorable trajectory toward a digital future. As such, we believe that investors should not throw the baby out with the bathwater or avoid the industry. There are gems here, which is discussed later in this report.
There were sizable differences in the financial performance of the companies in the publishing group.Q2 publishing revenue declined on average 1.5%. The notable exceptions to this performance was The New York Times, up 11.5%, News Corp, up 7.3%, and Lee Enterprises, down a modest 0.7%. The improved performance into the ranks of the leaders in the industry is quite notable. Lee’s digital subscriptions currently lead the industry. The company has exceeded all of its peers in terms of digital subscription growth in the past 11 consecutive quarters. Furthermore, over 50% of its advertising is derived from digital. Currently, roughly 30% of the company total revenues are derived from digital, still short of the 55% at The New York Times, but closing the gap.
Not only is Lee performing well on the digital revenue front, it has industry leading margins. Lee’s Q2 EBITDA margins were 12%, in line with News Corp and second only to the New York Times at 17%. We believe that margins should improve over time as the company continues to migrate toward a higher digital margin business model.
Noble’s Publishing Index, which decreased a modest 2% in the quarter, outperforming the S&P (-5%). The relatively favorable performance of the index was primarily due to its largest constituents, News Corp. and The New York Times, which rebounded from -30% and -39%, respectively in Q2, to -3% and +3%, respectively, in Q3. The average percentage change of the stocks in the industry was -16%, more in line with Traditional Media as a whole. One of the poor performing stocks in the index for the quarter was Gannett (GCI) which declined 47%. It was recently reported that the company implemented austerity measures included unpaid leave and voluntary layoffs. In the case of Lee Enterprises, the shares were down a much more modest 7%, more in line with the general market.
LEE shares trade at an average industry multiple of 5.8 times Enterprise Value to our 2023 adj. EBITDA estimate. Notably, the company is closing the gap with its Digital Media revenue contribution to that of New York Times, which is currently trading at an estimated 14.5 times EV to 2023 adj. EBITDA. We believe that the valuation gap with the New York Times should close as well. In recent Lee Enterprise news, a buyout specialist investor filed a 13D and indicated interest in taking the company private. While financial players continue to circle the wagons for Lee, we believe that investors should take note.
This newsletter was prepared and provided by Noble Capital Markets, Inc. For any questions and/or requests regarding this news letter, please contact Chris Ensley
DISCLAIMER
All statements or opinions contained herein that include the words “ we”,“ or “ are solely the responsibility of NOBLE Capital Markets, Inc and do not necessarily reflect statements or opinions expressed by any person or party affiliated with companies mentioned in this report Any opinions expressed herein are subject to change without notice All information provided herein is based on public and non public information believed to be accurate and reliable, but is not necessarily complete and cannot be guaranteed No judgment is hereby expressed or should be implied as to the suitability of any security described herein for any specific investor or any specific investment portfolio The decision to undertake any investment regarding the security mentioned herein should be made by each reader of this publication based on their own appraisal of the implications and risks of such decision This publication is intended for information purposes only and shall not constitute an offer to buy/ sell or the solicitation of an offer to buy/sell any security mentioned in this report, nor shall there be any sale of the security herein in any state or domicile in which said offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or domicile This publication and all information, comments, statements or opinions contained or expressed herein are applicable only as of the date of this publication and subject to change without prior notice Past performance is not indicative of future results.
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MOTORSPORT GAMES’ LATEST INSTALLMENT OF THE NASCAR GAMING FRANCHISE COMBINES ASPECTS OF RACING RIVALRIES INTO A SINGLE USER EXPERIENCE
MIAMI, Oct. 14, 2022 (GLOBE NEWSWIRE) — Motorsport Games Inc. (NASDAQ: MSGM) (“Motorsport Games”), a leading racing game developer, publisher and esports ecosystem provider of official motorsport racing series throughout the world, announced today the launch of NASCAR Rivals, exclusive for Nintendo Switch consoles. The officially licensed video game of the 2022 NASCAR Cup Series season, this latest installment of the video game franchise combines the thrill of the NASCAR Cup Series with the intensity of motorsports rivalry to fans everywhere. NASCAR Rivals is available starting today across leading retailers and the Nintendo eShop for $49.99. A link to the trailer can be found here.
NASCAR Rivals brings the excitement of the NASCAR Cup Series regular season and playoffs to fans on the go with the Nintendo Switch’s easy, built-in mobility. The game’s variety of race modes provide players the ability to race and compete in different ways, emphasizing rivalry across the sport itself and among teams in the NASCAR Cup Series, drivers and the players, both locally and via multiplayer. All of the tracks, cars, drivers and teams from the 2022 NASCAR Cup Series regular season and playoffs are included. Modes available to play include ‘Race Now,’ ‘Career Mode,’ and an exciting ‘Challenges’ mode, which incorporates sequences based on real-life-on-track events to test players’ resilience and see if they have what it takes to navigate the selected scenarios.
“As we continue to build new ways to bring the NASCAR Cup Series to life, our goal with NASCAR Rivals was to highlight a pertinent component of all motorsports, the competition,” said Jay Pennell, Brand Manager, NASCAR, at Motorsport Games. “This latest offering not only lets fans challenge their own skills, but compete against their friends, other online players, and challenges within the sport itself. We’re excited for our fans to truly immerse themselves in what it means to be a NASCAR champion, while allowing them to embrace their inner rival wherever and whenever.”
The game’s numerous ‘Multiplayer’ functions offer players varying ways to challenge each other on the track. In ‘Split Screen’ mode, friends can race against each other locally using the Nintendo Switch Joy Cons. In ‘Online Multiplayer’ users will be able to compete against up to 15 other players anywhere in the world via Nintendo Switch Online. Additionally, newly-added creative elements in NASCAR Rivals give players the opportunity to create custom and unique schemes with an enhanced ‘Paint Booth,’ in addition to their driver avatars with a variety of appearances, sponsor logos and more to truly curate an experience around their own legacies in the game.
Motorsport Games developed NASCAR Rivals as an elevated experience for fans to fully embrace the intensity and thrill of NASCAR with the unlimited portability of the Nintendo Switch console. NASCAR Rivals gives gamers and fans alike the ability to pick up the NASCAR experience anywhere they desire to hone their skills and take on the competition one by one.
NASCAR Rivals is now available at all leading retailers and for download on the Nintendo eShop for $49.99.
About Motorsport Games: Motorsport Games, a Motorsport Network company, is a leading racing game developer, publisher and esports ecosystem provider of official motorsport racing series throughout the world. Combining innovative and engaging video games with exciting esports competitions and content for racing fans and gamers, Motorsport Games strives to make the joy of racing accessible to everyone. The Company is the officially licensed video game developer and publisher for iconic motorsport racing series across PC, PlayStation, Xbox, Nintendo Switch and mobile, including NASCAR, INDYCAR, 24 Hours of Le Mans and the British Touring Car Championship (“BTCC”), as well as the industry leading rFactor 2 and KartKraft simulations. RFactor 2 also serves as the official sim racing platform of Formula E, while also powering Formula 1™ centers through a partnership with Kindred Concepts. Motorsport Games is an award-winning esports partner of choice for 24 Hours of Le Mans, Formula E, BTCC, the FIA World Rallycross Championship and the eNASCAR Heat Pro League, among others. Motorsport Games is building a virtual racing ecosystem where each product drives excitement, every esports event is an adventure and every story inspires.
Forward-Looking Statements: Certain statements in this press release which are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are provided pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as “continue,” “will,” “may,” “could,” “should,” “expect,” “expected,” “plans,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning the timing, participants and expected benefits of the NASCAR Rivals game and related products and updates. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Motorsport Games and are difficult to predict. Examples of such risks and uncertainties include, without limitation: difficulties, delays in or unanticipated events that may impact the timing and expected benefits of the NASCAR Rivals game and/or related products and updates, such as due to unexpected release delays. Factors other than those referred to above could also cause Motorsport Games’ results to differ materially from expected results. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in Motorsport Games’ filings with the Securities and Exchange Commission (the “SEC”), including its Annual Report on Form 10-K for the fiscal year ended December 31, 2021, its Quarterly Reports on Form 10-Q filed with the SEC during 2022, as well as in its subsequent filings with the SEC. Motorsport Games anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Motorsport Games assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Motorsport Games’ plans and expectations as of any subsequent date. Additionally, the business and financial materials and any other statement or disclosure on, or made available through, Motorsport Games’ website or other websites referenced or linked to this press release shall not be incorporated by reference into this press release.
Website and Social Media Disclosure: Investors and others should note that we announce material financial information to our investors using our investor relations website (ir.motorsportgames.com), SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media and blogs, to communicate with our investors and the public about our company and our products. It is possible that the information we post on our websites, social media and blogs could be deemed to be material information. Therefore, we encourage investors, the media and others interested in our company to review the information we post on the websites, social media channels and blogs, including the following (which list we will update from time to time on our investor relations website):
Partnership allows Awin and ShareAsale’s 21,000 retailers to leverage a market proven influencer relationship management platform in Sideqik
NEW YORK, NY / ACCESSWIRE / October 14, 2022 / Sideqik (“Sideqik”), the end-to-end influencer marketing platform that enables brands to build scalable, repeatable and predictable revenue engines, a wholly-owned subsidiary of Engine Gaming and Media, Inc. (NASDAQ:GAME)(TSXV:GAME), today announced a partnership with Awin and ShareASale, the fastest-growing affiliate marketing platforms in North America.
Sideqik’s database of over 60 million influencers across the 10 most popular social networks will allow Awin’s 21,000 retailers to better identify relevant, brand-safe influencers, streamline relationship management and grow their sales and customer base, simultaneously leveraging Sideqik’s robust, AI-powered database, providing actionable insights and real time reporting throughout the whole influencer marketing lifecycle.
“Across the industry, there is a growing demand from consumer brands to execute more profitable, better measured influencer marketing campaigns,” said Joris Cretien, Partner Growth Director at Awin. “Awin and ShareASale’s integration with Sideqik allows our brands to identify and manage influencer partnerships, deploy spend at scale and report on the return – a critical element for smaller businesses with tighter budgets – all through Sideqik’s robust tool set.”
“Sideqik, Engine’s influencer relationship management platform, is gaining adoption as part of mainstream marketing strategies for companies of all sizes,” commented Lou Schwartz, CEO, Engine Gaming & Media. “Our partnership with Awin and ShareASale unlocks a substantial number of retailers looking to leverage a market proven platform with expertise in supporting both affiliate sales and expansion of consumers through social media channels. We are excited to support the growth and scaling of these businesses.”
About Sideqik
Sideqik is an influencer marketing platform that offers brands, CPG, direct marketers, and agencies tools to discover, connect and execute marketing campaigns with content creators. Sideqik’s end-to-end solutions offer marketers advanced capabilities to discover influencers with demographic and content filtering; connect and message influencers; share marketing collateral such as campaign briefs, photos, logos, videos; measure reach, sentiment, and engagement across all major social media platforms; and evaluate earned media value and ROI across the entire campaign.
Awin is a marketing technology platform, providing an open marketplace for businesses to create any type of acquisition partnership. Together with ShareASale, the platforms’ 240,000+ partners – including traditional affiliates, global mass media houses, trusted micro-influencers and innovative fintech businesses – enable advertisers to generate more sales, expand customer reach and strengthen their brand. Retailers that migrate to the Awin Group from competitor platforms experience triple-digit affiliate program growth and a 63% uplift in revenue. In addition to leading the way with our reach, Awin and ShareASale’s award-winning technology and tools – including first-party tracking, multi-channel attribution and in-app tracking – ensure a program tracks all sales, making it optimally attractive for partners to want to promote.
Engine Gaming and Media, Inc. (NASDAQ:GAME) (TSX-V:GAME) provides unparalleled live streaming data and social analytics, influencer relationship management and monetization, and programmatic advertising to support the world’s largest video gaming companies, brand marketers, ecommerce companies, media publishers and agencies to drive new streams of revenue. The company’s subsidiaries include Stream Hatchet, the global leader in gaming video distribution analytics; Sideqik, a social influencer marketing discovery, analytics, and activation platform; and Frankly Media, a digital publishing platform used to create, distribute, and monetize content across all digital channels. Engine generates revenue through a combination of software-as-a-service subscription fees, managed services, and programmatic advertising. For more information, please visit www.enginegaming.com.
Company Contact: Lou Schwartz 647-725-7765
Investor Relations Contact: Shannon Devine MZ North America Main: 203-741-8811 GAME@mzgroup.us
~ Frankly initiates monetization of Filmfeed, Inc.’s Stash TV Digital Linear Channel with growing AI technology, audience insight solutions and performance tracking tools ~
NEW YORK, NY / ACCESSWIRE / October 10, 2022 / Frankly Media (“Frankly”), a digital publishing platform used to create, distribute and monetize content across all digital channels and wholly-owned subsidiary of Engine Gaming and Media, Inc. (NASDAQ:GAME)(TSXV:GAME), today announced a partnership with Filmfeed, Inc.. The partnership enables Frankly to monetize their recently launched Stash TV video streaming content via their premium yield advertising services.
“Frankly’s Programmatic Advertising monetization services are proving to be extremely valuable to our distribution as we begin to leverage their revenue growing AI technology, audience insight solutions and performance tracking tools to better track and importantly, monetize our newly launched Stash TV CTV streaming content.” commented Nikolaas Top, Product Manager at Stash TV.
Frankly Media offers an integrated suite of gaming, news and entertainment solutions that help its customers modernize their digital ecosystem, maximize their audience reach and engagement, and fully monetize their display, audio and video content. Frankly’s fully integrated solution suite includes premium yield advertising solutions that include ad sales, ad operations, audience insights, revenue optimization AI and performance analytics, video streaming for Live, VOD and FAST Channels, Mobile Apps, OTT/CTV Apps, Website/CMS and Audience Engagement widgets.
“The Stash TV launch is yet another example of how Engine Gaming & Media fuels the growth and footprint of all types of media companies. We value all our partnerships and are extremely grateful to be partnering with Filmfeed, Inc.” offered Lou Schwartz, CEO, Engine Gaming & Media.
About Filmfeed, Inc.
Stash TV licenses their content exclusively from Filmhub, a dynamic disruptor in the film distribution space. Filmhub provides a digital ecosystem that enables top filmmakers to publish and monetize their strong and fresh films through over 100+ digital channels. Via Filmhub, Stash TV is able to instantly license, distribute, and stream thousands of titles without negotiating individual contracts with each title owner. Empowered by this partnership, they plan to scale their beta streaming channel to host 10k+ titles within the next year.
About Frankly Media
Frankly Media provides a complete suite of solutions that give publishers a unified workflow for creating, managing, publishing, and monetizing digital content to any device while maximizing audience value and revenue. Frankly delivers publishers and their audiences the solutions to meet the dynamic challenges of a multi-screen content distribution world.
Frankly’s comprehensive advertising services maximize ROI for our customers, including direct sales and programmatic ad support. With the release of our server-side ad insertion (SSAI) platform, Frankly is well-positioned to help video producers take full advantage of the growing market in addressable advertising.
Frankly’s technology products include a ground-breaking online video platform for Live, VOD, and Live-to-VOD workflows, a full-featured CMS with rich storytelling capabilities, and native apps for iOS, Android, Apple TV, Fire TV, and Roku. The company is headquartered in New York, with offices in Atlanta. Frankly Media is a Subsidiary of Engine Media and Media, Inc.
About Engine Gaming and Media, Inc.
Engine Gaming and Media, Inc. (NASDAQ:GAME) (TSX-V:GAME) provides unparalleled live streaming data and social analytics, influencer relationship management and monetization, and programmatic advertising to support the world’s largest video gaming companies, brand marketers, ecommerce companies, media publishers and agencies to drive new streams of revenue. The company’s subsidiaries include Stream Hatchet, the global leader in gaming video distribution analytics; Sideqik, a social influencer marketing discovery, analytics, and activation platform; and Frankly Media, a digital publishing platform used to create, distribute, and monetize content across all digital channels. Engine generates revenue through a combination of software-as-a-service subscription fees, managed services, and programmatic advertising. For more information, please visit www.enginegaming.com.
THE CURRENT NASCAR TEAMS, DRIVERS AND CARS ARE SET TO BE PLAYABLE ACROSS IGNITION, NASCAR HEAT 5 AND NASCAR HEAT MOBILE
MIAMI, Oct. 06, 2022 (GLOBE NEWSWIRE) — Motorsport Games Inc. (NASDAQ: MSGM) (“Motorsport Games”), a leading racing game developer, publisher and esports ecosystem provider of official motorsport racing series throughout the world, announced today the official launch of the NASCAR 21: Ignition (“Ignition”) 2022 Season Expansion Update to reflect the 2022 NASCAR Cup Series season. Updates to the title, available for free, will be seen across Race Now, Online Multiplayer and the Paint Booth and is available for download for Sony PlayStation 4 and 5, Xbox One, Series S and X and PC through the Steam store.
For current owners of Ignition, both Standard and Champion Editions will be able to download the update for free, while those who do not currently own the game can purchase Ignition at a reduced price point ($19.99 USD) and then receive the free install. Additionally, NASCAR 21: Ignition – Victory Edition is available, which will include the Season Pass 1 (2021 DLC content), 2022 Season Expansion and Season Pass 2 (2022 DLC content). A first look at the new features within the game can be seen in a trailer here.
“We are thrilled to add the 2022 Season Expansion Update into Ignition today so that our fans can enjoy the most up to date content for this historic season,” said Jay Pennell, Brand Manager, NASCAR at Motorsport Games. “The update comes at a great time as well, with the NASCAR Cup Series Playoffs currently in full swing. Just as the Next Gen cars have added unique elements to the real-life grid, they will now add those same factors into the digital racing world for players. It was also imperative for us to be able to replicate the newest content across all of our titles, something that has been achieved and we cannot wait for players of Ignition, NASCAR Heat 5 and NASCAR Heat Mobile to all enjoy the 2022 content moving forward.”
The Ignition 2022 Season Expansion Update provides a number of refreshed features for the title, including a UI refresh, upgraded HUD, newly recorded broadcast introductions from Motor Racing Network’s On-Air Announcer, Alex Hayden and the current 2022 NASCAR Cup Series racetracks from both the regular season and playoffs. The 2022 lineup of drivers, teams and paint schemes have been directly pulled from the 2022 season, as well as all three Next Gen car models from Chevrolet, Ford and Toyota.
In addition to being available to owners of Ignition, the 2022 Season Expansion Update will be released on NASCAR Heat 5 and NASCAR Heat Mobile. Players will be able to purchase the 2022 Season Expansion Update on NASCAR Heat 5 for $12.34, starting October 21, 2022. The 2022 Season Expansion will arrive as a free update on NASCAR Heat Mobile, starting October 27, 2022. With these updates, NASCAR’s 2022 season will be reflected across all of Motorsport Games’ NASCAR properties. Players will be able to utilize the cars, drivers and teams from the 2022 NASCAR Cup Series season in Race Now, Career Mode and Online Multiplayer in NASCAR Heat 5 as purchasable downloadable content, and as a free content update within NASCAR Heat Mobile.
About Motorsport Games: Motorsport Games, a Motorsport Network company, is a leading racing game developer, publisher and esports ecosystem provider of official motorsport racing series throughout the world. Combining innovative and engaging video games with exciting esports competitions and content for racing fans and gamers, Motorsport Games strives to make the joy of racing accessible to everyone. The Company is the officially licensed video game developer and publisher for iconic motorsport racing series across PC, PlayStation, Xbox, Nintendo Switch and mobile, including NASCAR, INDYCAR, 24 Hours of Le Mans and the British Touring Car Championship (“BTCC”), as well as the industry leading rFactor 2 and KartKraft simulations. rFactor 2 also serves as the official sim racing platform of Formula E, while also powering Formula 1™ centers through a partnership with Kindred Concepts. Motorsport Games is an award-winning esports partner of choice for 24 Hours of Le Mans, Formula E, BTCC, the FIA World Rallycross Championship and the eNASCAR Heat Pro League, among others. Motorsport Games is building a virtual racing ecosystem where each product drives excitement, every esports event is an adventure and every story inspires.
Forward-Looking Statements: Certain statements in this press release which are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are provided pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as “continue,” “will,” “may,” “could,” “should,” “expect,” “expected,” “plans,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning the timing, participants and expected benefits of NASCAR 21: Ignition 2022 Season Expansion Update and related products and updates. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Motorsport Games and are difficult to predict. Examples of such risks and uncertainties include, without limitation: difficulties, delays in or unanticipated events that may impact the timing and expected benefits of the NASCAR 21: Ignition 2022 Season Expansion Update and/or related products and updates, such as due to unexpected release delays. Factors other than those referred to above could also cause Motorsport Games’ results to differ materially from expected results. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in Motorsport Games’ filings with the Securities and Exchange Commission (the “SEC”), including its Annual Report on Form 10-K for the fiscal year ended December 31, 2021, its Quarterly Reports on Form 10-Q filed with the SEC during 2022, as well as in its subsequent filings with the SEC. Motorsport Games anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Motorsport Games assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Motorsport Games’ plans and expectations as of any subsequent date. Additionally, the business and financial materials and any other statement or disclosure on, or made available through, Motorsport Games’ website or other websites referenced or linked to this press release shall not be incorporated by reference into this press release.
Website and Social Media Disclosure:
Investors and others should note that we announce material financial information to our investors using our investor relations website (ir.motorsportgames.com), SEC filings, press releases, public conference calls and webcasts. We use these channels, as well as social media and blogs, to communicate with our investors and the public about our company and our products. It is possible that the information we post on our websites, social media and blogs could be deemed to be material information. Therefore, we encourage investors, the media and others interested in our company to review the information we post on the websites, social media channels and blogs, including the following (which list we will update from time to time on our investor relations website):
NEW YORK, NY / ACCESSWIRE / October 6, 2022 / Engine Gaming and Media, Inc. (“Engine” or the “Company”) (NASDAQ:GAME) (TSXV:GAME), a data-driven, gaming, media and influencer marketing platform company, today announced that it has commenced a process to explore and evaluate strategic options to enhance and preserve shareholder value.
“Maximizing shareholder value has always been our first priority,” stated, Lou Schwartz, Engine’s Chief Executive Officer, “and to that end, throughout 2022, Engine has been aggressively cutting costs and focusing its business lines and initiatives with the goal of accelerating our timeline to achieving profitability. In support of, and in parallel to this objective, we believe the commencement of our strategic process will be helpful in connecting with third parties who could be synergistic with our existing businesses or in providing new opportunities for the Company and its shareholders.”
Tom Rogers, Executive Chairman of the Company, added, “As I have indicated on our last couple of earnings calls, with a large number of small cap companies with distressed stock price situations similar to our own, we feel this is an environment full of opportunity for discussions with various parties to assess how mutual ambitions to create greater scale in a tough economy can be better realized.”
Potential strategic options to be explored or evaluated as part of this process may include, but are not limited to, merger, reverse merger, acquisition, other business combination, sale of assets, partnerships, joint ventures, licensing, or other strategic transactions involving Engine. The Company has not set a timetable for completion of this process and does not expect to disclose developments with respect to this process unless and until the evaluation of strategic alternatives has been completed or the Company’s Board of Directors has concluded disclosure is appropriate or legally required.
Engine has engaged KPMG Corporate Finance, Inc. and Haywood Securities, Inc. as the Company’s exclusive financial advisors to assist in this process.
About Engine Gaming and Media, Inc.
Engine Gaming and Media, Inc. (NASDAQ:GAME) (TSX-V:GAME) provides unparalleled live streaming data and social analytics, influencer relationship management and monetization, and programmatic advertising to support the world’s largest video gaming companies, brand marketers, ecommerce companies, media publishers and agencies to drive new streams of revenue. The Company’s subsidiaries include Stream Hatchet, the global leader in gaming video distribution analytics; Sideqik, a social influencer marketing discovery, analytics, and activation platform; and Frankly Media, a digital publishing platform used to create, distribute, and monetize content across all digital channels. Engine generates revenue through a combination of software-as-a-service subscription fees, managed services, and programmatic advertising. For more information, please visit www.enginegaming.com.
Cautionary Statement on Forward-Looking Information
This news release contains forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Engine to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. In respect of the forward-looking information contained herein, Engine has provided such statements and information in reliance on certain assumptions that management believed to be reasonable at the time. Forward-looking information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements stated herein to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Actual results could differ materially from those currently anticipated due to a number of factors and risks. Accordingly, readers should not place undue reliance on forward-looking information contained in this news release.
The forward-looking statements contained in this news release are made as of the date of this release and, accordingly, are subject to change after such date. Engine does not assume any obligation to update or revise any forward-looking statements, whether written or oral, that may be made from time to time by us or on our behalf, except as required by applicable law.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Investor Relations Contact: Shannon Devine MZ North America Main: 203-741-8811 GAME@mzgroup.us
MIAMI, Oct. 05, 2022 (GLOBE NEWSWIRE) — Motorsport Games Inc. (NASDAQ: MSGM) (“Motorsport Games”), a leading racing game developer, publisher and esports ecosystem provider of official motorsport racing series throughout the world, announces today the entry list for the second round of the 2022-23 Le Mans Virtual Series, 4 Hours of Monza. The list is available (HERE). The high level of both real life and sim drivers due to compete in the upcoming Monza event is a great indication that another closely contested race is likely from start to finish.
Names such as 2021 ELMS champion Yifei Yi, Mexican motorsport legend Luis Diaz and Porsche factory driver Ayhancan Güven will be racing alongside esports elite, including those representing Bahrain victors Floyd Vanwall-Burst (Dillmann/Simončič/Pedersen) in LMP and Oracle Red Bull Racing (Webster/Siebel/Jordan) in GTE.
The race will take place on the rFactor2 platform at the virtual Autodromo Nazionale Monza and full, uninterrupted coverage will begin from 12:40 p.m. BST (CEST = +1 hour / EST = -5 hours) on Saturday, October 8. The Italian temple of speed is unmatched for its history and the passion it invokes in motorsport fans – real or virtual – and esport racing fans can be sure that plenty of action will be in store!
A total of 40 cars will battle it out in two different classes – 24 in LMP, with all competitors using an ORECA 07 LMP2 model, and 16 in GTE with teams having a choice of Ferrari, BMW, Porsche and Aston Martin Vantage models. Manufacturer support also comes to teams representing Alpine and Mercedes AMG.
Qualifying begins on Friday, October 7 at 6:00pm BST, and all race action can be followed on the FIA WEC, Le Mans and TraxionGG’s YouTube channels, on twitch.tv/traxiongg, and on multiple social media channels.
For further media information, contact Fiona Miller, Miller Media & Communications, on +44 7770 371332 or media@lemansvirtual.com
About Le Mans Virtual Series Le Mans Virtual Series is a global, elite esports series made up of five rounds which bring together endurance racing and sim racing’s top teams to compete on some of the world’s most famous racetracks. International FIA-licensed real-world drivers are teamed up with elite esports squads to take on endurance classics for a total prize fund of US$250,000, culminating in the prestigious 24 Hours of Le Mans Virtual. Le Mans Virtual Series is a joint venture between leading racing game developer, publisher and esports ecosystem provider of official motorsport racing series throughout the world, Motorsport Games, and the Automobile Club de l’Ouest (ACO) – the creator and organizer of the world-famous 24 Hours of Le Mans and promoter of the FIA World Endurance Championship (FIA WEC).
Round 1
8 Hours of Bahrain, Bahrain
September 17, 2022
Round 2
4 Hours of Monza, Italy
October 8, 2022
Round 3
6 Hours of Spa, Belgium
November 5, 2022
Round 4
500 Miles of Sebring, USA
December 3, 2022
Round 5
24 Hours of Le Mans Virtual
January 14/15, 2023
About Motorsport Games: Motorsport Games, a Motorsport Network company, is a leading racing game developer, publisher and esports ecosystem provider of official motorsport racing series throughout the world. Combining innovative and engaging video games with exciting esports competitions and content for racing fans and gamers, Motorsport Games strives to make the joy of racing accessible to everyone. The Company is the officially licensed video game developer and publisher for iconic motorsport racing series across PC, PlayStation, Xbox, Nintendo Switch and mobile, including NASCAR, INDYCAR, 24 Hours of Le Mans and the British Touring Car Championship (“BTCC”), as well as the industry leading rFactor 2 and KartKraft simulations. RFactor 2 also serves as the official sim racing platform of Formula E, while also powering Formula 1™ centers through a partnership with Kindred Concepts. Motorsport Games is an award-winning esports partner of choice for 24 Hours of Le Mans, Formula E, BTCC, the FIA World Rallycross Championship and the eNASCAR Heat Pro League, among others. Motorsport Games is building a virtual racing ecosystem where each product drives excitement, every esports event is an adventure and every story inspires.
Forward-Looking Statements: Certain statements in this press release which are not historical facts are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are provided pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements in this press release that are not statements of historical fact may be deemed forward-looking statements. Words such as “continue,” “will,” “may,” “could,” “should,” “expect,” “expected,” “plans,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” and similar expressions are intended to identify such forward-looking statements. These forward-looking statements include, but are not limited to, statements concerning the timing, participants and expected benefits of the 2022-23 Le Mans Virtual Series, 4 Hours of Monza event. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the forward-looking statements, many of which are generally outside the control of Motorsport Games and are difficult to predict. Examples of such risks and uncertainties include, without limitation: difficulties, delays in or unanticipated events that may impact the timing and expected benefits of the 2022-23 Le Mans Virtual Series, 4 Hours of Monza event, such as due to unexpected changes in the event participants, as well as less than anticipated participation in or viewership of the event. Factors other than those referred to above could also cause Motorsport Games’ results to differ materially from expected results. Additional factors that could cause actual results to differ materially from those expressed or implied in the forward-looking statements can be found in Motorsport Games’ filings with the Securities and Exchange Commission (the “SEC”), including its Annual Report on Form 10-K for the fiscal year ended December 31, 2021, its Quarterly Reports on Form 10-Q filed with the SEC during 2022, as well as in its subsequent filings with the SEC. Motorsport Games anticipates that subsequent events and developments may cause its plans, intentions and expectations to change. Motorsport Games assumes no obligation, and it specifically disclaims any intention or obligation, to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by law. Forward-looking statements speak only as of the date they are made and should not be relied upon as representing Motorsport Games’ plans and expectations as of any subsequent date. Additionally, the business and financial materials and any other statement or disclosure on, or made available through, Motorsport Games’ website or other websites referenced or linked to this press release shall not be incorporated by reference into this press release.
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Frankly initiates monetization of Aggregated Media’s A8 Esports Digital Linear Channel while maximizing target audience reach
NEW YORK, NY / ACCESSWIRE / October 3, 2022 / Frankly Media (“Frankly”), a digital publishing platform used to create, distribute and monetize content across all digital channels and wholly-owned subsidiary of Engine Gaming and Media, Inc. (NASDAQ:GAME)(TSXV:GAME), today announced a partnership with Aggregated Media (“A8”), an esports and video game culture media company. The partnership enables Frankly to monetize A8’s content via their premium yield advertising services and maximize their audience reach through Frankly’s video streaming platform, mobile apps and OTT/CTV.
“We’ve been extremely impressed with Frankly’s highly skilled Programmatic Advertising and SaaS resources. The team is very hands on, helping us every step of the way. We’re also utilizing their video streaming and app platforms to assist our content creators to easily ingest and distribute our esports and gaming content to an ever-increasing esports and gaming audience,” commented Erik Reynolds, President of Aggregated Media.
Frankly Media offers an integrated suite of gaming, news and entertainment solutions that help its customers modernize their digital ecosystem, maximize their audience reach and engagement, and fully monetize their display, audio and video content. Frankly’s fully integrated solution suite includes premium yield advertising solutions that include ad sales, ad operations, audience insights and performance analytics, website/cms, video streaming for Live, VOD and FAST Channels, Mobile Apps, OTT/CTV Apps, and Audience Engagement widgets.
“Aggregated Media is a perfect partnership for the Engine Gaming & Media family. We are thrilled to be serving their team and are working hard to optimize the monetization of their content, maximize their audience reach and modernize their digital ecosystem,” offered Lou Schwartz, CEO, Engine Gaming & Media.
About Aggregated Media
Backed by Nations Ventures and Stadia Ventures (Spring 2022 Accelerator Program), Aggregated Media or A8 for short, is an esports content platform of 30+ Twitch, Youtube, podcast, and social media shows reaching more than 6.5 million unique esports fans that has solved the challenge of delivering the higher engagement of microinfluencers at the same scale as some of the biggest influencers in the world. A8 partners with world class content creators, esports teams, networks and tournament organizers to co-produce, broadcast, distribute and monetize content across multiple media platforms. For more information: info@aggregatedmedia.com.
About Frankly Media
Frankly Media provides a complete suite of solutions that give publishers a unified workflow for creating, managing, publishing, and monetizing digital content to any device while maximizing audience value and revenue. Frankly delivers publishers and their audiences the solutions to meet the dynamic challenges of a multi-screen content distribution world.
Frankly’s comprehensive advertising services maximize ROI for our customers, including direct sales and programmatic ad support. With the release of our server-side ad insertion (SSAI) platform, Frankly is well-positioned to help video producers take full advantage of the growing market in addressable advertising.
Frankly’s technology products include a ground-breaking online video platform for Live, VOD, and Live-to-VOD workflows, a full-featured CMS with rich storytelling capabilities, and native apps for iOS, Android, Apple TV, Fire TV, and Roku. The company is headquartered in New York, with offices in Atlanta. Frankly Media is a Subsidiary of Engine Media and Media, Inc.
About Engine Gaming and Media, Inc.
Engine Gaming and Media, Inc. (NASDAQ:GAME) (TSX-V:GAME) provides unparalleled live streaming data and social analytics, influencer relationship management and monetization, and programmatic advertising to support the world’s largest video gaming companies, brand marketers, ecommerce companies, media publishers and agencies to drive new streams of revenue. The company’s subsidiaries include Stream Hatchet, the global leader in gaming video distribution analytics; Sideqik, a social influencer marketing discovery, analytics, and activation platform; and Frankly Media, a digital publishing platform used to create, distribute, and monetize content across all digital channels. Engine generates revenue through a combination of software-as-a-service subscription fees, managed services, and programmatic advertising. For more information, please visit www.enginegaming.com.
Nobel Prizes, Election Outcomes and Sports Championships – Prediction Markets Try to Foresee the Future
Who will win Nobel Prizes in 2022? Wikipedia posits a handful of contenders for Physiology or Medicine, about 20 different possible winners for the Peace Prize and several dozen potential winners of the Literature Prize. But since the Swedish Academy never announces nominees in advance, there are few insights indicating who will win, or even if the eventual winner is on a given list.
Are there ways to predict the future winners?
The Delphi approach, named after the oracle in ancient Greece, gathers multiple rounds of opinions from a group of experts to generate a prediction. Gambling firms provide betting odds on the likelihood that specific competitors will win. Crowdsourced competitions, such as the Yahoo Soccer World Cup “Pick-Em,” have participants predict individual contest winners and then aggregate the results.
Another approach is a prediction market that provides insight into what people expect will happen in the future by creating a stock market-like environment to capture the “wisdom of the crowd.” Groups and crowds often are collectively smarter than individuals when many independent opinions are combined.
This article was republished with permission from The Conversation, a news site dedicated to sharing ideas from academic experts. It represents the research-based findings and thoughts of Daniel O’Leary, Professor of Accounting and Information Systems, University of Southern California.
As an accounting and information systems professor at the University of Southern California, I investigate issues related to the crowd both in my research and in my teaching. Here’s how prediction markets harness what the crowd thinks to forecast the future.
The Wisdom of the Market
In prediction markets, participants buy and sell stocks. Each stock’s price is tied to a different event happening in the future. Information about the future is captured in the stock prices.
For instance, in a prediction market focused on the Nobel Peace Prize, maybe Greta Thunberg is trading at $0.10 while Pope Francis is trading at $0.15, and the stocks for the entire group of candidates add up to sum to $1. The prices reflect the traders’ aggregated beliefs about the probability of their winning – a higher price means a higher perceived likelihood of winning.
Examples of Prediction Markets
Anyone can get in on the prediction game by trading on one of these markets or even just checking out which stocks are up or down.
Prediction markets have various ways of setting stock prices. The Iowa Electronic Markets took following approach during the 2020 U.S. presidential election:
Stock DEM2020 pays off $1 if the Democratic candidate wins, and $0 otherwise,
Stock REP2020 pays off $1 if the Republican candidate wins, and $0 otherwise.
The stock prices capture the probabilities of each candidate winning, in two mutually exclusive events. If the price of DEM2020 is $0.52, then that is treated as the probability of that event occurring – a 52% chance. If DEM2020 is $0.52, then REP2020 is $0.48.
Prediction markets may use real money, or they can use play money. Google’s market used what it called “Goobles,” while the Hollywood Stock Exchange uses Hollywood Dollars. The Iowa Electronic Markets and PredictIt, both sponsored by universities, use real money. Researchers have found that there are no differences in the performance of markets using real money versus those using play money.
Although using play money makes it possible for many people to participate, one potential challenge for prediction markets that don’t use real money is gaining and maintaining interested participants. Despite using different devices to keep up engagement, such as leader boards indicating who has accumulated the biggest portfolio, there is literally no money on the table to keep participants interested in the market.
Market participants who know more about the game might better predict winners. Image Credit: Marco verch (Flickr)
Participants Bring Their Knowledge to the Market
Prediction markets and crowdsourcing do not function in a vacuum.
Researchers have found that information about events finds its way into the prediction processes from various sources. For example, when I analyzed the relationship between the betting odds and the Yahoo Pick-Em crowd’s guesses for the 2014 FIFA World Cup, I found that there was no statistical difference between the proportion of correct guesses in each. My conclusion is that either the crowd’s guesses incorporated the betting odds information or the crowd’s guesses added up to the same result by some other means.
Generally, prediction markets use play money or are run by non-profit universities to study markets, elections and human decision making. Although gambling houses can take bets for many activities, external prediction markets are more restricted in the activities they can be used to investigate, and are typically limited to elections. However, internal prediction markets – run within a corporation, for instance – can explore almost any topic of interest.
Typically, prediction markets function better with informed participants. Although using so-called inside information is illegal in some markets, including the New York Stock Exchange, there generally are no such limitations in prediction markets, or other crowdsourcing approaches. If those with inside information were to participate in a prediction market, it would likely lead to more accurate stock prices, as insiders make trades informed by their knowledge. However, if others find out that a participant has inside information, then they may very well try to gain access to that info, follow the insider’s actions or even decide to leave the unfair market.
The accuracy of prediction markets depends on many factors, including who is in the market, what their biases are and how heterogeneous the participants are. Accuracy can also depend on how many people are in the market – more is generally better – and the extent to which they are informed about the events of interest.
Researchers have found that prediction markets have outperformed polls in presidential elections roughly 75% of the time. But accurate results are not guaranteed. For example, prediction markets did not correctly predict that Donald Trump would win the U.S. presidency in 2016.
Who Will be in Stockholm for the Ceremony?
In 2011, Harvard University economics faculty had a real-money prediction market site, referred to as “the world’s most accurate prediction market.” The site had been used for predicting the Nobel Prize in Economics, but Harvard advised the site to shut down.
I couldn’t find any current public prediction markets active for the 2022 Nobel Prizes.
For the moment, perhaps the closest to participating in a Nobel prediction market would be to place a bet at one of the gambling houses that takes bets on the Nobel Prizes. Or find a Nobel Prize Pick-Em site, propose such an event to an existing prediction market or build your own prediction market using some of the available software.
