TORONTO, May 08, 2019 (GLOBE NEWSWIRE) — Enthusiast Gaming Holdings Inc. (TSX.V:EGLX) (OTCQB:EGHIF), (“Enthusiast” or the “Company”) is excited to announce that its digital property, The Sims Resource (“TSR”) has grown its subscriber base to 61,000 monthly registered users. The increase of 11,000 users represents a 20% increase in subscriber base from the initial definitive agreement (see press release announced January 5, 2019). TSR’s subscribers pay on average C$5 per month to access its VIP features growing the recurring revenue stream from paid subscriptions to over C$3.5 million on an annual run rate.
When Enthusiast announced the acquisition of TSR, the largest female gaming website in the world, the site had 50,000 monthly subscribers representing 40% of the annual revenue. The increase further validates the engagement of the TSR community and the demographic’s willingness to pay for exclusive content and features.
Women drive 70% to 80% of all consumer purchasing(1), through a combination of their buying power and influence. TSR’s significant network of female gamers, which is ranked #7 on Quantcast’s Top 25 websites with the highest concentration of female audience in the United States (behind Oprah.com and Bravotv.com), positions the network as a leading destination for advertisers looking to target the female demographic.
Menashe Kestenbaum, CEO of Enthusiast commented,
“All of the digital properties we have acquired have grown since inception, which supports our growth strategy though accretive acquisitions. One of the leading factors for our decision to acquire TSR was their successful subscription model. The continued growth of their registered user base, further validates the engagement of their audience and also, the significant opportunity to growth recurring monthly revenue. We see great potential for this model and are currently looking at opportunities to adopt it across our entire network.”
The TSR subscription model was one of three key revenue drivers for Enthusiast. The current subscription model allows registered users to have access to premium features and simplified download experience. The subscription model has the potential to add considerable revenue across Enthusiast’s entire portfolio as it introduces it across its network of owned sites. In addition to the subscription model, Enthusiast sees an opportunity to drive revenue through direct sales. To date, TSR’s advertising revenue has been largely based on organic, programmatic advertising, and the addition of a direct sales strategy would allow the optimization of advertising revenue to contribute to the existing programmatic revenue.
TSR is the largest female video gaming content site in the world generating in excess of 2.5 billion page views per year and Comscore’s Gaming Information category currently ranks TSR in the top 5 independent video game websites. With the rapidly growing female video game segment, TSR provides Enthusiast immediate reach into this valuable audience.
About Enthusiast Gaming
Founded in 2014, Enthusiast Gaming Holdings Inc. (TSX.V:EGLX) (OTCQB:EGHIF) is the largest vertically integrated video game company and has the fastest-growing online community of video gamers. Through the Company’s unique acquisition strategy, it has a platform of over 80 owned and affiliated websites and currently reaches over 75 million monthly visitors with its unique and curated content and over 50 million YouTube visitors. Enthusiast also owns and operates Canada’s largest gaming expo, Enthusiast Gaming Live Expo, EGLX, (eglx.ca) with approximately 55,000 people attending in 2018. For more information on the Company, visit www.enthusiastgaming.com.
This news release contains certain statements that may constitute forward-looking information under applicable securities laws. All statements, other than those of historical fact, which address activities, events, outcomes, results, developments, performance or achievements that Enthusiast anticipates or expects may or will occur in the future (in whole or in part) should be considered forward-looking information. Such information may involve, but is not limited to, comments with respect to strategies, expectations, planned operations and future actions of the Company. Often, but not always, forward-looking information can be identified by the use of words such as “plans”, “expects”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “anticipates”, or “believes” or variations (including negative variations) of such words and phrases, or statements formed in the future tense or indicating that certain actions, events or results “may”, “could”, “would”, “might” or “will” (or other variations of the forgoing) be taken, occur, be achieved, or come to pass. Forward-looking information is based on currently available competitive, financial and economic data and operating plans, strategies or beliefs as of the date of this news release, but involve known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, performance or achievements of Enthusiast to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. Such factors may be based on information currently available to Enthusiast, including information obtained from third-party industry analysts and other third-party sources, and are based on management’s current expectations or beliefs regarding future growth, results of operations, future capital (including the amount, nature and sources of funding thereof) and expenditures. Any and all forward-looking information contained in this press release is expressly qualified by this cautionary statement. Trading in the securities of the Company should be considered highly speculative.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
The securities of the Corporation have not been and will not be registered under the United States Securities Act of 1933, as amended and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirement. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
