Enthusiast Gaming Holdings Inc. (EGLX.V) (EGHIF), (“Enthusiast” or the “Company”) is excited to announce that its digital property, The Sims Resource (“TSR”) has grown its subscriber base to 61,000 monthly registered users. The increase of 11,000 users represents a 20% increase in subscriber base from the initial definitive agreement (see press release announced January 5, 2019). TSR’s subscribers pay on average C$5 per month to access its VIP features growing the recurring revenue stream from paid subscriptions to over C$3.5 million on an annual run rate.
Enthusiast Gaming, digital property, The Sims Resource
When Enthusiast announced the acquisition of TSR, the largest female gaming website in the world, the site had 50,000 monthly subscribers representing 40% of the annual revenue. The increase further validates the engagement of the TSR community and the demographic’s willingness to pay for exclusive content and features.
Women drive 70% to 80% of all consumer purchasing(1), through a combination of their buying power and influence. TSR’s significant network of female gamers, which is ranked #7 on Quantcast’s Top 25 websites with the highest concentration of female audience in the United States (behind Oprah.com and Bravotv.com), positions the network as a leading destination for advertisers looking to target the female demographic.
Menashe Kestenbaum, CEO of Enthusiast commented, “All of the digital properties we have acquired have grown since inception, which supports our growth strategy though accretive acquisitions. One of the leading factors for our decision to acquire TSR was their successful subscription model. The continued growth of their registered user base, further validates the engagement of their audience and also, the significant opportunity to growth recurring monthly revenue. We see great potential for this model and are currently looking at opportunities to adopt it across our entire network.”
The TSR subscription model was one of three key revenue drivers for Enthusiast. The current subscription model allows registered users to have access to premium features and a simplified download experience. The subscription model has the potential to add considerable revenue across Enthusiast’s entire portfolio as it introduces it across its network of owned sites. In addition to the subscription model, Enthusiast sees an opportunity to drive revenue through direct sales. To date, TSR’s advertising revenue has been largely based on organic, programmatic advertising, and the addition of a direct sales strategy would allow the optimization of advertising revenue to contribute to the existing programmatic revenue.
TSR is the largest female video gaming content site in the world generating in excess of 2.5 billion page
views per year and Comscore’s Gaming Information category currently ranks TSR in the top 5 independent video game websites. With the rapidly growing female video game segment, TSR provides Enthusiast immediate reach into this valuable audience.
About Enthusiast Gaming
Founded in 2014, Enthusiast Gaming is the largest vertically integrated video game company and has the fastest-growing online community of video gamers. Through the Company’s unique acquisition strategy, it has a platform of over 80 owned and affiliated websites and currently reaches over 75 million monthly visitors with its unique and curated content and over 50 million YouTube visitors. Enthusiast also owns and operates Canada’s largest gaming expo, Enthusiast Gaming Live Expo, EGLX, (eglx.ca) with approximately 55,000 people attending in 2018. For more information on the Company, visit www.enthusiastgaming.com.