They recently announced that they’re going to go public through yes, another spec, but at least this is officially announced the spec, the ticker symbol, for that is ac ac. Now this pack is actually backed by former chairman and ceo of mgm, so pretty good on that front. Now i know we know a lot of gaming companies out there. We know a lot of gaming casino companies out there as well. For example, platika went public recently as well. They’Re valued at i think. Over 13 billion dollars play studios is actually valued at around 1.1 billion dollars, so pretty cheap compared to platika. I know platika is huge, but still, if you look at it for a long term perspective, this could be a cheaper option. Also play studios. Does things differently? All that will be discussed in this video little hint little preview is that they actually offer real life rewards. Now, before i jump into this video, i want to thank everyone that has been subscribing lately if you haven’t, subscribed yet hit that subscribe button. If you like, this video leave an early thumbs up as it really helps out, grow the channel and get my videos out there so without further ado, let’s dive into this Music right. So first a quick intro of what play studios actually does then we’re gon na look at the investors presentation so basically play studios has developed a portfolio of beautifully designed top ranked games that have attracted a loyal following due in part to the company’s unmatched play awards.
Loyalty program now the program lets players earn real world rewards from a curated collection of 80 partners and 275 entertainment, retail travel, leisure and gaming brands. They also become the first publicly listed mobile games. Company offering players real world rewards now to date, the play studios community has used its in app loyalty points to purchase over 10 million rewards with a retail value of nearly 500 million dollars. So like most gaming apps, they try to bring the experience to your living room. For example. Here they try to bring vegas to your mobile phone, but that doesn’t mean they don’t. Want you to physically go to vegas as well, because, like we just said, they offer players real world rewards that entails maybe a discount at a certain hotel in vegas, maybe cruises, planes nice little buffet, free, buffet in a hotel, etc, so that’s. Overall. What they’re doing now let’s go and take a look at their investor presentation, so first we have play studios it’s more than just a game. It actually is way more than just a game. So the investment highlights here. We can see 2022 revenue of 435 million dollars again. This is just projected revenues, doesn’t mean it cannot exceed, but it doesn’t mean it cannot be less than that as well. 4.2 million monthly active users 56 minutes play per day. 46 percent a bit the compound annual growth rate overall, a massive market opportunity, dedicated network of players, global network of award partners and, very importantly, its founder, led, so to give a bit more context, the market is massive gaming, like you know, i’m, a big gamer, big Fan of gaming has eclipse music movies and books.
You can see here in the last couple of years. It has exceeded all of those markets and in my opinion, this will just continue to do so now. If one of you has ever created an app created a game, you know there is this creator dilemma. So this is where it becomes very interesting. So the creators dilemma the inevitable life cycle of a great game. So it starts with development, then launch, then growth all goes well maturity. You reach your peak, but then becomes the struggle of the retention. As you can see, it goes downhill from there now. This is where play studios come in the loyalty lift. As you can see, the graph does not go downhill after maturity because of the incremental impact of the loyalty program, which brings way more value than traditional gaming and traditional programs. We actually see that with lots of stores. Nowadays they have this loyalty program to try and bring you back next time and next time and next time. So here, what does it actually bring? Extra play? Free games earn real rewards. You have real world events, you have a my vip framework. Real community connections consider service vip hosts. All of that combined really helps with the retention of your users and customers. Like i previously said, loyalty programs work. You can see here, 78 percent, more customer engagement with brands. Offering loyalty program goes from dining airlines, theaters cars, retail groceries, you name it.
If you have a loyalty program, you know your customers will be way more engaged than if you don’t offer that option. So you might ask yourself right now: how do they partner with such brands? How do these brands reach out to play studios? How does this actually work, so you can see actually it’s a cycle so let’s say you start from here. Up top you promote the partners in the app players starts playing, and then they redeem real world awards, which translates in more revenue to their partners. Then the partners promote the actual app that just brought them more revenue, which means that player will return to the digital realm to redeem in app offers, and then the cycle continues and continues. Obviously, this goes without saying: the more players, the more customers, the more customers, the more partners that would like to join the program, the more partners, the more awards and then again the will continues to spin more and more so, you might ask yourself who are those Partners so, as you can see here, those entail norwegian cruise line, mgm grand area, some helicopter tools, some restaurants, some bars so pretty much everything you can find in hong kong, in las vegas in singapore, everywhere, there’s a huge base of casino and gaming, so what’s next. For play studios, how can they reach next level? How can they reach hyper growth? So actually, the next level opportunity is by bringing and integrating more and more games.
The biggest one is the rpg and strategic games, which is at a market of 30.3 billion dollars. You’Ve, probably seen of heard of afk arena, for example, i’ve been spammed with tons of advertising by them. So this is basically the area and this style of gaming that they’re going to try and integrate within the play studios ecosystem. Because again, these are the types of games that you might not think a lot of people play, but actually tons and tons of people played, especially in asia. Mobile gaming is very, very big, so their two main targets is basically the rpg world and the bingo world, and especially for the rpg category. The play awards offering are going to be way better and way. More appealing for players, for example, amusement and theme parks, sports events, esports events, concerts, festivals, etc. So, lastly, let’s just look at their financials, so revenue right now has been growing steadily between 2019 2020. It was a bit slowing down at 13, but then last year, they’re up 22. I would have expected it to be a bit more, but, as you can see from 2021 to 2022, they expect that to grow even more to 33. Now they forecast a 30 margin by 2025. at first i thought this was pretty low, but as we will see, competitors are not as high as that. So here it is, you can see they compare themselves each and every year, so 2022, 2023.
2025. So 2025, like i said they expect to be at 30 percent right now. Platika is at 36 percent double down interactive 35, but zynga. A pretty big player in this field is only at 25. So yes, 30 percent might not seem a lot, but, as you can see here, the median is at 32, so they would be on the same level as their major competitors. As you can see here, they actually expect to outgrow most of their competitors by a lot. So the compound annual growth rate between 2020 and 2022 is at 27 percent. When you see the other players, such as zynga platika at 15 and 7, so they are expected to outgrow and grow revenue faster than all of those other players again. These are just. Projections by the company remains to be seen what actually happens right. So, to conclude, as of now, i do not hold play studios, but if i would be buying a casino or a gaming stock right now, it would probably be that one. The market opportunity is pretty big. Evaluation is pretty cheap right now compared to other players. In the market and to find a cheap valuation nowadays is very, very rare. I also like the fact that, unlike other players, they actually offer real world awards, so it’s pretty cool it incentivizes a lot of people to actually play those games. They have countless of groups on facebook, helping each other how to win and also where to spend those awards, so it’s pretty cool to bring that social aspect that real world social aspect to such a mobile game, and that will be it for this video.
Let me know down in the comments below what you actually think about play studios. Have you actually heard about it? Maybe you hold one of their competitors, leave it down in the comments below and if you like, these videos, leave it a thumbs up.