 Welcome back to Investor Intel. Today we have the privilege of enthusiast gaming and e-sports company joining us as its presidents Menosh Hi, Peter. Nice to meet you. How are you doing today? I'm doing well doing very well excited to talk about e-sports and The company is doing extremely well as well E-sports took in more dollars than the box office in Hollywood last year, didn't it? That's right gaming is Over a hundred fifty billion dollar industry right now, and that's happened all over the past ten years So when you look at growth industries and you look at scale, this is it And we're not talking about people playing in their basement League of Legends back and forth. We're talking large institutions filling arenas filling movie theaters For the purpose of watching and participating in e-sports exactly So which one of the various silos in the industry is enthusiast in? So I bucket things into four categories. There are teams team-based teams There are events There are the game publishers who make the games that other people play and then there are platforms You know the online platforms such as twitch and discord The platforms to the side for a second the other three have parallels in many other industries. Yeah, so the gaming is like It's the real content. It's like baseball or or football or any other sport you like to watch Yes, so we actually play in multiple. We don't make the game That's for sure not part of it But we have the teams the events and the platform and the biggest moneymaker is the platform because you could You know your team is wherever they go wherever they win the tournaments the events are wherever they're physically located But online we reach over 200 million gamers. So That provides a lot of the scale So let's save the platform for later because that's sure possibly the most complicated part the content is easy Yeah, you have athletes you have teams they compete they win and I can sit on my couch and watch ABC on a Tuesday afternoon And watch one of these events live I can go to my movie theater or I can pay money like WWE or Mixed martial arts and go see an event live Yes, and after the players compete and they gain notoriety. They then go on to Livestream at home and build personal Relationships with their audience was something that's harder to do if let's say you're Kobe Bryant You know, you're gonna live stream a gym over here You're live streaming talking direct with an audience and there are 700 million people now Watching gaming e-sports content online and that's a huge part of our business as well Okay, that's one tenth of the world's population. You're sure you have that number, right? Yes, that is a new zoo number and Netflix Said to their shareholders that their biggest competitor right now is not an HBO go or another streaming platform Rather, it's all the people on YouTube and on Twitch watching other people play games. That's a stunning amount of money If I remember correctly the gaming industry last year was about 150 billion US dollars of total GDP, yeah, correct, and that's global Yeah, and there was actually if you look back into the 90s there was about a hundred million gamers in the world because there wasn't a lot of internet yet and most games were played either on your local home PC or they were played by yourself Or they were played on your living room couch Nowadays According to new zoo, there's over two billion people who play games Granted a billion of those are playing it on their smartphones whether it's candy crush or something else But there's another billion or so who are playing, you know, 70 of north american Homes have gaming consoles in them or a pc. So gaming is is now a far surpassed film and tv as the predominant form of entertainment And it's not that people are doing it at home. We have these cafes where people like to have a cheeseburger Have a beer engage in gaming engage in the social side of the industry Yeah, people are even sneaking at work and doing it, you know When they're when their bosses aren't watching they'll quickly grab in a game of something And then when they're on their bus on the bus or the subway, they'll do it on their phones They're always we're always connected to the internet on some form of device nowadays and there's games on every device So you're not a game enthusiast is not a publisher You do own teams And let's talk about the platforms now You need to have channels for distribution in the good old days It was newspaper then it was radio and we had that marvel called tv and these are all different platforms Within the internet there were a variety of platforms available And which one of those platforms are you currently on? So we aren't we're on our own platform We are also of course on social media and youtube and whatnot But like you mentioned, I think that's a good analogy, you know When you had the new york times you're essentially getting a journalist who has high credentials Who's coming in and nowadays with social media and youtube And blogging and media platforms that are independent. We've had a math plethora of Just people who are experts right they've built up an expertise somehow from their careers or or or anywhere else And now they could publish lots of youtube or they can make their own blog or they could join a independent media company So so the ability to have expert content creators has exploded and that's why you have people on youtube So our communities that we we have about 120 gaming communities Each dedicated to different types of games Where it's um, I would say the majority of these content creators are self made content creators Where it's community created content where we have Moderators senior editors who come and kind of find the cream of of the crop That you know, it floats to the top and and we help incentivize them through rev shares and monetization They're really that's maybe you know a small fraction of the overall communities where Who are on our platforms talking creating content commenting debating consuming content. So Um, they're kind of like facebook, but for gamers Um, the thing is facebook is kind of a catch-all versus here Gamers want to be with people who love what they love whether it's pokemon or esports At hurt. I'm a capitalist. I want to know how you make money off people chatting off bloggers writing about you How does enthusiast make money and make money for its shareholders? So currently the we have multiple revenue streams our lowest hanging fruit for our revenue streams Is that we have over a billion pages a month across uh online uh, we serve that we get about a 30 billion ad requests a month and Um, we monetize those Uh, we started off, you know five five years ago is in a basement with two people now We have 250 people around around multiple offices um, and we've started to build technology to serve the ads and and find those are looking specifically for a gaming audience So advertisers are key Uh that brought in about 18 million dollars of our revenue this past year Uh, but then we also have about three to four million dollars coming in through subscribers Who pay about four bucks a month. So we have about 75 000 subscribers monthly How sticky are those subscribers? Is there a lot of churn or once they're on they're on forever? Um So it is a relatively new thing this subscription Offering and we are actually only offering it to a small percentage of our user base because we wanted to test it out so Last year we were about 50 000 subscribers and now we're at about 75 000 Um, and and we keep on expanding it to additional communities of ours But right now it's primarily on one or two of our larger communities So we'll see as that becomes more of a priority. We also have, uh, Canada's largest gaming convention Um, which brings in about one and a half million dollars and we're looking to expand that to to new cities now Okay, um, and then there's that convention called EGLX, which is the same as the ticker. What when is it going to be held this year? October 18 to 20th Everybody who's watching go buy a ticket. I'll see you there Yeah, exactly And what's the other red screen then and the last one is um from the esports teams We also have sponsorships and merchandise. So those are team specific Uh, so there's no media involved in in the team sponsorships It's more like the logos on the jerseys and the apparel So it's no different from me going to buy a Manchester United jersey. Exactly Yes, and I can wear my wear my team with pride. Yeah Yeah You mentioned earlier your symbol. Which stock exchange do you trade on? So currently we trade on the Toronto stock exchange um for The venture exchange not tmx So we we actually earlier this month were approved for the ts for tmx the the main board the big board So we're going to be one of the 1% of companies that graduate from the venture exchange to the big board this month Yeah, that's a fantastic success story to date. Can we check that? We'll check back in with you in a couple of months for an update. Absolutely. Yes. We're also on the otc Okay, I will see you in october Thank you very much, peter Enthusiast gaming from investor intel. Thank you all