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FansUnite (FANS.C) shareholders have head-on-a swivel as McBookie revenues surge

11/05/2020

On November 5, 2020 FansUnite (FANS.C) 100%-owned subsidiary McBookie released October, 2020 numbers, reporting “the highest increase in monthly revenue and gross margin in the company’s 10-year history”.

Two months ago, FANS announced that the Scottish-based McBookie had increased year-over-year turnover for the months of July and August by 108% – from CAD $3 million to $6.3 million, with 78% of the turnover growth led by the return of live sports.

The U.K Sportsbook “set company records with triple-digit growth in multiple areas, led by a 433% increase in overall revenue compared to October, 2019, and a total gross win of $602,000 during the month.

We follow companies with thin news flow – and we scold them for lack of activity.

Is it fair to ask a company to slow down?

For FANS shareholders, it’s head-on-a-swivel time as the betting co. advances biz objectives aggressively on multiple fronts.

Three weeks ago, FANS signed a distribution deal with “a leading on-line casino games aggregator” to distribute its proprietary random number generated (RNG) games to on-line casinos and sportsbooks in the European market.

The deal was struck through FANS recently merged company Askott.

Askott’s iGaming platform, Chameleon Gaming Platform – “engineered for the next generation of online bettors and casino players” – includes products for pre-match betting, in-play betting, daily fantasy, content and a certified Random Number Generator (RNG) to produce casino style chance games”.

Besides hosting the games on its B2B offering, the Chameleon Gaming Platform, Askott Games will sign agreements with existing casino game aggregators to make the games available to thousands of online casinos and sportsbooks worldwide.

“Game aggregators compile the best casino games they can find and offer them to online casinos and sportsbooks through a single integration,” states FANS.

The arrangements with game aggregators are on a revenue share basis, Askott Games will receive a share of the net gaming revenue every time one of their games is played.

The November 5, 2020 press release stated that “McBookie’s new Live Casino product, encompassing multiple tables and variations of blackjack, roulette and baccarat, all with live real dealers, garnered substantial interest from on-line bettors”.

October, 2020 vs. October 2019:

  • Betting volume was $5.1-million, an increase of 460%
  • Gross win was $197,000 an increase of 679%

McBookie added new features, including bet builder, which enables on-line bettors to fully customize and build their bets across any number of markets, and instantly receive a price on their desired wager.

The Scottish National Soccer Team’s presence in the prestigious UEFA European Championship qualifiers, helped propel FANS to new financial heights.

There is also now a full slate of English soccer fixtures.

The English Premiere League (EPL) is a global juggernaut.

EPL clubs spent $2 billion CAD on transfer fees for players this summer.

Famed Manchester United (MANU.NYSE) has 2020 international revenues of $820 million CAD. Full year 2019 MANU revenues were $1.03 billion.

On November 8, Tottenham (3rd place) is playing West Brom (18th place).

McBookie is posting a 19/4 payout if West Brom wins.

We like those odds.

Tottenham’s coach Jose Mourinho is massively over-rated, and has a history of belittling his best players.

McBookie October Numbers:

  • Betting volume was $2.2-million, an increase of 188%, compared with October, 2019.
  • Gross win was $405,000, an increase of 363%, compared with October, 2019.

“Despite the global pandemic, McBookie had a record-breaking month of growth in October and demonstrated how seasoned operators can not only pivot their business during challenging times but still produce results that propel their business to new heights,” stated Scott Burton, CEO of Fansunite Entertainment.

“With sports now starting to come back and new products in their casino offering, we have full faith that McBookie will establish themselves as the preeminent on-line betting platform in Scotland and expand their footprint throughout the highly sought after U.K. gambling industry,” continued Burton.

“With Serbia playing against Scotland in the European Championship soccer qualifiers, the U.S. Masters beginning in two weeks and the Scottish Cup final coming up in the next few months, sports are very much back in business and should see an increase in betting volume on our platform,” added Paul Petrie, founder and director of McBookie.

“Online gambling is set to be worth over 60 billion dollars and is expected to hit $94 billion in 2024,” stated Bit Rebels who cite various modernizations including Augmented & Virtual Reality making their way into the gambling world.

“We believe FansUnite has the technology, team, and experience to become a global leader in the iGaming industry,” stated Mackie Research Capital in a recent report, “We initiate coverage on FansUnite with a 12-month target price of $0.55 per share based on applying a 7.00x EV/Sales multiple to our 2022 annual sales estimate of $13.2 million discounted by 10%.”

FansUnite is currently trading at .20 – less than half of Mackie’s 12-month target.

FANS strategic bets are starting to pay off.

  • Lukas Kane

Full Disclosure: Fans Unite is an Equity Guru marketing client.

 

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