Enthusiast Gaming (TSXV:EGLX) is a gaming company that operates an online network of websites dedicated to video gaming. It recently completed a merger with the esports firm Luminosity Gaming. This will provide Enthusiast with access to Luminosity’s large user base.
Shares of Enthusiast have dropped 29% over the past month as of close on September 27. Esports have seen massive growth over the past decade. By 2021, the gaming market intelligence firm Newzoo projects that the annual growth rate in esports viewership will be 14%. It also forecasts that the number of casual viewers will grow to 307 million worldwide.
Newzoo also estimates that there has been an average revenue increase of 30% annually from 2016 to 2018. In 2018, the average year-over-year increase in total revenue reached a whopping 38.2%. The firm predicts that the esports market will generate more than $1.6 billion in total revenue in 2021, with $1.3 billion coming from brand investments.
This should pique investor interest in Enthusiast’s recent pullback. The steady growth of esports and interest for its viewership should fuel companies like this into the next decade. Enthusiast is now the largest gaming network in the United States by Comscore. Moving into the fall of 2019, Enthusiast now boasts assets that include seven esports teams, 40 influencers, over 80 websites, and over 900 YouTube and Twitch channels.
Enthusiast Gaming is well worth jumping on before the New Year.
