@Strawman. Thanks for setting up the meeting with Gerry. The depth of strategic thinking and his willingness to openly share this is quite rare. An increasing number of irons in the fire point to continued momentum going forward.

As I have said previously, he has a 360 degree view of the gaming market, new technologies in Gaming, an intimate knowledge of Playside capability as a business and together with his passion and vision, will most likely navigate a course which proves to be very lucrative for investors. When you talk investing in gaming, RISK is always at the forefront of peoples's minds. Believe we are in very safe hands and being perfectly aligned for current / future opportunity.

For those that missed the meeting, worth a watch IMO.

RobW

Posted a straw titled ' Smart allocation of Capital ' after the latest 4c. Having joined the Webinar this morning ( H1 FY2023 Financials), very comfortable with my prior read. No break in momentum here, just 'smart' execution on the Company's part, that is in my opinion.

Imagining the future of early stage 'great' Companies is always a challenge. I'm backing this one as having 'realisable' future potential in spades.

Rob W

Clearly the market was spooked by the PIVOT announced via the 4C.

Here's my take...

Analysts measure and monitor a Company's track record on the ROI following Capital Allocation, normally associated with acquisitions. The PIVOT as announced on Tuesday is nothing more than a strategic decision in support of an improved ROI on the allocation of Human Capital. This call is clearly not motivated by any economic stress nor any particularly failure. The Company is living through their own experiences as well as through their partner experiences, with a leaning to the future in gaming. Gerry Sakkas is not only a 'switched-on' individual, but enjoys a 360 degree view of the business and it's prospects. So, in my opinion. he is simply capitalising on the areas of greatest opportunity. Likely to see much more of this going forward.

As far as the 4c is concerned, I was expecting receipts to come in at AUD 7.5m - AUD 8 m range. So 10- 15% light. The declaration of the 'underlying' Revenue of AUD 10m provides a more than healthy offset. Accustomed to the common term 'underlying EBITDA' where once off or irregular inputs are removed. Intrigued with what is implied with 'underlying Revenue'. Something to do with write offs ? Dont think so. Anyhow, all shall be revealed inside of 4 weeks (H1 Financials).

And finally, they have signalled pulling the plug on mainly titles in pre-production (Original IP). This implies it is most likely to come from the following list : Dumb ways to Die 4, Dumb ways to Die Dumb Choices, An 'untitled' Dumb ways to Die and then Pillage Party and Anti Gen. Be interested to see what happens with the newly announced Dumb ways to Survive for Netflix. Was this the 'untitled' game from the above ?

In closing worth remembering that they do enjoy Revenue sharing on many of the Work for Hire programs. Elevates them to the Big Stage and by all accounts, their partners like the quality of their work. Remains a strong hold for me to be confirmed when we get to see the H1 Financials.

RobW

A pleasing Qtrly released this morning. Just over $7 m in cash receipts and Revenue for the Qtr above $6m. The WFH component of the Revenue was consistent with Q4 FY22 Revenue, this on the back of a $15m backlog of WFH Revenue entering FY23. The Company will obviously enjoy new WFH signings during the year and recently announced an expansion to and the extension of the Meta WFH agreement ( commitment now extends to Dec 2023).

It is quite conceivable that the WFH component for FY 23 could surpass the $20 m mark.

Turning our attention to the Original IP Revenue, if we simply annualise the QTRLY number released today, that says we will hit the $ 10 m mark for FY23. Excluding the Beans Revenue in FY22 ( which some regard as a 'Windfall'), they posted $ 10m of Original IP during FY22.

I refer you to the Q4 FY22 Activities Report where they spoke to the healthy situation on WFH given much of the above. They then went on to say that notwithstanding the favourable outlook on the WFH Revenue, they believed the FY23 Revenue for Original IP would exceed that of WFH. Whilst it is early days, not unreasonable to see the FY23 Total Revenue exceeding $45m ( up near on 60% y-o-y)

What of the Expense side of the equation ? The cash expenses lifted by near on 30% to $ 8 m Quarter on Quarter, this reflecting and incorporating the new costs associated with the Gold Coast operation. These costs will likely continue to increase but doubt if the annual number will surpass $40 m. Reasonable to expect the weak Aussie $ to remain a tailwind for FY23. And finally, let's not forget the Tax offsets now offered to Gaming Companies by both Victoria and QLD.

Factor in the extremely High Gross Margin and profitability (NPAT) is within sight. All in my opinion of course.

RobW

Herewith an extract from an investor news letter which will add to future Revenue.

Worth remembering that Playside have indicated a carry on Work-for-Hire into FY2023 of more than AUD 15 m. They are also on record that they expect Original IP Revenue to exceed WFH Revenue in FY2023. Worth a read ....

I am pleased to share two very exciting pieces of news that have recently occurred at PlaySide. The first is that we successfully launched our mobile game Legally Blonde: The Game on iOS and Android mobile devices globally a few weeks ago. The second is that we recently made a new key hire in our Chief Strategy Officer Benn Skender.

You may recall that back in March 2021, PlaySide signed a license agreement with Metro-Goldwyn-Mayer (MGM) to develop and publish a mobile free-to-play game based on its feature films Legally Blonde and Legally Blonde 2: Red, White & Blonde. Under the multi-year agreement, PlaySide was provided with a license to incorporate the movie themes and branding from the iconic films into a mobile title.

Legally Blonde: The Game is a combination of captivating legal narrative and Match 3 puzzles, including extensive character customisation options, casting, and empowering freedom of expression and speech through narrative choices. Players earn stars to continue the storyline, unlock sleek fashion designs, earn exclusive boosters and more across 500+ levels of themed board layouts.

Now that the title has launched globally, we will focus on our marketing plan including influencer promotion, global PR and press and social media coverage. We also have a real focus on continuing to improve the title by regularly adding new features and content updates to further enhance the users’ experience. If you haven’t already, check it out!

Early key metrics and reviews during the soft launch phase have been very positive and demonstrate that our vision for the game is resonating with the audience. This is a key milestone for PlaySide as it is the first of many planned launches for FY23 as we execute on our strong pipeline of Original IP titles.

****

Love the bit I have highlighted in Bold. The Godfather to follow and then the big one ' Age of Darkness'. Another year of 'stellar growth' on the cards.

RobW

Had a good run on this one, but suspect this is still only the beginning of a long and prosperous journey.

The Revenue associated with the new 'Work for Hire' agreement (8 figure amount), as announced today, is likely to be equal to or greater than the Total Revenue posted during FY21. Another subtle reference to 'Age of Darkness' suggesting they have hit the mark in terms of the Gaming community. Then there is the pipeline of new releases ( Original IP) planned over the next 12 to 18 months.

For those that rely on valuation, good luck with projecting growth on this one. On the subject of valuation, understand that both the Commonwealth and State/s have declared a tax offest for Gaming Companies who post annual Revenue exceeding AUD 500k. The Commonwealth have offered a flat tax offset of 30%. With the exception of QLD, the States have offered a further 10% tax offset. QLD have upped that to 15%. This all becomes effective July 2022.

Then we have the normal R&D incentives. All helps to extend profitabiliy going forward.

CR fully justified IMO. And to raise at 75c, hats off to Playside. Suspect the Retail component will be heavily over-subscribed. Hoping it's a pro-rata offer which would secure an allocation, but probably the usual cap of $30k with a signicant cut back. More targetted acquisitions to come ?

RobW