eResearch | Today’s Video-of the-Day is from InvestmentPitch Media about PopReach Corporation (TSXV: POPR) as the Company has a new listing on the TSXV and started trading on July 8, 2020.
Based in Toronto with a team of 120 gaming experts in Toronto, Vancouver and Bangalore, PopReach is a mobile gaming publisher focused on acquiring and optimizing existing game franchises.
Instead of developing new video game titles, the Company focuses on generating revenue through acquisition, user optimization and retention, and reduces expenses by improving operating efficiencies.
PopReach believes it can mitigate single-game risk by maintaining a diverse portfolio of games.
The Company portfolio already comprises 12 game franchises, competing primarily in the North American game market, including:
- Smurfs Village (with intellectual property under license)
- Bakery Blitz
- Brightwood Adventures
- City Girl Life
- Explorers: Skull Island
- Gardens of Time
- Glory of Room
- Guava Juice: Tub Tapper
- Kingdoms of Camelot
- Kitchen Scramble
- Lucky Slots
- War of Nations
FIGURE 1: Selection of PopReach’s Mobile Gaming Apps
According to the Company, its portfolio of 12 game franchises are played by more than 1.2 million monthly active users and is distributed through the Apple App Store, Google Play, Amazon Appstore and Facebook Canvas digital platforms.
In 2019, PopReach generated revenues of $18.0 million with a Net Loss of $4.4 million but an Adjusted EBITDA of $3.0 million. In the first quarter of 2020 (Q1/2020), the Company recorded $4.7 million of revenue with a Net Loss of $0.7 million and an Adjusted EBITDA of $0.9 million.
Currently trading at 0.7x Last Twelve Months (LTM) revenue, PopReach trades below the Canadian Video Game multiple of 2.5x and the Large Cap Video Game multiple of 4.9x.
PopReach’s experienced executive team includes CEO Jon Walsh, who worked at both Upsight and FusePowered, where he published several #1 ranking mobile games, and President & COO Christopher Locke, who was the Founder and CEO of Blammo Games, which was acquired by Glu Mobile (NASDAQ: GLUU) in 2011.
According to Newzoo, 2.4 billion gamers spent US$152 billion on video games in 2019, a 10% increase year-over-year; mobile games represented US$68.5 billion or 45% of the gaming market. The mobile games market is expected to grow to US$94 billion by 2022, growing at a three-year CAGR of 11%.
To learn more about the PopReach’s new listing, you can access today’s Video-of-the-Day here:
//
