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Esports Mogul (ASX:ESH) sees increased interest during COVID-19 pandemic

Technology
ASX:ESH
01 May 2020 18:30 (AEST)

During the COVID-19 pandemic, Esports Mogul (ESH) saw an increasing number of people flock to its online gaming platform.

Social distancing and travel restrictions have put an end to in-person esports competitions for the foreseeable future.

During the quarter, Team Secret launched its branded ‘Secret Stars’ hub on Mogul, from which Mogul receives 60 per cent of revenue from paid subscribers.

In addition, Esports Mogul partnered with Microsoft for the 12-month ‘Age of Empires II Asia Cup’ tournament which will run until February 2021.

The company believes it is well-placed to attract further organisers, teams, influencers and publishers.

At the end of the March quarter, Esports Mogul had a cash balance of $3.1 million, down from $4.3 million at the end of the previous quarter.

At a quarterly net operating cash flow of $761,000, the company’s operations are funded for a minimum of twelve months.

This funding runway doesn’t take into account revenue growth since the end of March or savings from cost-cutting measure introduced in April, notably a 20 per cent reduction in director fees/salary.

Company shares finished the day where they started, worth 0.7 cents each.

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