- Esports Mogul (ESH) says its online tournament hosting is in strong demand due to the global restrictions on travel and public gatherings
- It also reported its partnership pipeline remains strong, with discussions continuing with well-known esports brands
- As of yet Mogul is not expecting any negative impacts on its revenue or operations as a result of COVID-19
- However, the Board has taken cost reduction actions to ensure that the company will not need to raise any equity within the next 12 months
- The includes payment reductions by 20 per cent for senior members
- Mogul has ended the day grey with shares trading for 0.5¢ each
Esports Mogul (ESH) has updated the market on its operations during the COVID-19 pandemic.
Online Platform
The company’s tournament online platform is the world’s most advanced pure-play online esports tournament and is currently in strong demand.
Mogul says this is due to global restrictions on travel and social gatherings. These restrictions are making the platform highly attractive to esports event organisers, teams, influencers and game publishers.
Mogul’s Branded Hubs allows partners to connect with their fans in one centralised space. This space can access streams, promote sponsors, and create new online tournaments or other events.
“The current COVID-19 pandemic is unprecedented both in its effect on our daily lives and on capital markets,” Managing Director Gernot Abl said.
“From a business perspective, we’re buoyed by the resilience of the esports market in these challenging times and are confident of our ability to maintain our commercial direction and to offer a solution to the esports industry that is grappling with mass-cancellations of live in-person events,” he added.
2020 Partnerships
Since the launch of Mogul Branded Hubs last year, the company has attracted some of the largest esports organisations in the world such as Razer, Microsoft, Team Secret, Mineski, Hasbro and many others.
Mogul’s team continues to work with both existing and potential partners on launching new Branded Hubs and creating new tournaments and events.
The company says it has not experienced any material contract impact as of yet during this pandemic.
Revenue Growth during COVID-19
The company is not expecting any negative impacts on its revenue or operations as a result of COVID-19. However, the Board has taken cost reduction actions to ensure that Mogul will not need to raise any equity within the next 12 months.
The measures put in place by the Board include an immediate reduction in Non-Executive and Executive Director cash remuneration by 20 per cent as well as staff salary reductions.
“The operational changes we have announced ensure that Mogul can continue to execute on its business plan and deliver revenue growth, whilst assuring investors that the company is well funded and won’t need to conduct a capital raising for the foreseeable future,” Gernot said.
Mogul has ended the day grey with shares trading for 0.5¢ each.