LEAF Mobile – The Canadian mobile games powerhouse positioned perfectly to enjoy a big boost from a booming industry
LEAF MOBILE INC. TSX:LEAF | OTC:LEMLF
There’s no denying it—the mobile gaming space is huge.
Indeed, it turned over a record $77.2 billion last year— almost 50% of total video gaming revenue worldwide.
What’s really exciting, however, is that the sector is expected to become much larger over the coming years.
For example, one report suggests that mobile games will make more than $100 billion annually by 2023.
Without a doubt, this is a growth market that every smart investor should be looking at.
The question is, with so many companies already well established, and with so many more now launching, how do you know which one to back?
Well, LEAF Mobile could provide the perfect answer.
DOWNLOAD OUR EXCLUSIVE REPORT to learn how LEAF Mobile is poised to generate huge returns in the booming mobile gaming space
You see, not only has this firm already delivered explosive growth outpacing the competition…
But it has also adopted what could be described as a smart ‘three-pillar strategy’ for claiming a significant share of the space.
Thanks to this strategy, which we’ll discuss in detail shortly, LEAF is already enjoying tremendous growth.
But, with a number of exciting new ventures on the horizon, that growth could be about to accelerate even further.
It’s a very exciting opportunity.
And at its core is the simple fact that the firm has very cleverly worked out exactly what mobile games people want to play…
People like to play games that link to the content they are passionate about
What makes a popular mobile game?
That’s the question most companies in this industry are trying to figure out.
The good news is, LEAF already has a pretty good idea of the recipe to success.
You see, the firm has figured out that people like to play games that link to the movies, TV shows, celebrities, interests, and hobbies they already know and love.
It has already had a lot of triumph with mobile games based around globally popular US TV shows like Archer and It’s Always Sunny in Philadelphia…
And by targeting existing intellectual property (IP) in this way, LEAF has established an extremely strong portfolio of long-life cycle games that generated more than $80 million last year.
But now, it is ready to take this approach to the next level.
The company plans to roughly double its portfolio of games over the next 12 months, adding a range of “top tier” IP into the mix.
And perhaps the most exciting example is a game that will leverage the brand of one of the most popular TV shows of the last few years:
RuPaul’s Drag Race.
RuPaul’s Drag Race is an Emmy Award-winning reality game show that seeks to find the best drag queen in the US (though there are now iterations in Canada and the UK, too).
The show is huge, with the number of series now running into double figures. Perhaps most importantly, it commands an incredibly loyal audience—and one that is particularly active on mobile.
The enormous revenue potential that taking the RuPaul brand into the mobile space presents to LEAF will immediately be clear.
Indeed, leveraging the existing success of popular shows by designing games around them in this way practically guarantees the companyfuture hits.
However, this isn’t the only way in which LEAF intends to cement its success…
Recurring revenue, a specialized tech platform, and targeted M&A put LEAF ahead of the competition
LEAF MOBILE INC. TSX:LEAF | OTC:LEMLF
Of course, it’s one thing to attract people to a mobile game by leveraging the popularity of IP they already recognize…
But for a mobile game to generate significant recurring revenue over many years, you need those people to stick around.
The team at LEAF is fully aware of this.
In fact, their approach to game development focuses on the concept of recurring revenue and building games with a focus on the lifetime value of customers.
By anticipating this simple fact—that retention is key—LEAF has already been able to generate significant revenue—as you’ve seen—that it expects to continue growing through 2021.
And so far, so good.
For more on how LEAF Mobile generates massive profits by creating long-life, IP-led mobile games, READ OUR EXCLUSIVE REPORT
Thanks to this model, the firm has already seen record numbers for the first quarter of this year, drawing in revenues of more than $25 million.
That’s a major lift on last year’s turnover on an annualized basis.
But there are, as we mentioned, two more parts of the puzzle that set LEAF aside from much of the competition in the mobile gaming space and pave the way for even greater growth…
First off, you’ve got the second pillar of growth, which revolves around a technology platform owned by the company called IdleKit.
In exchange for the payment of additional revenues and royalties to LEAF, other developers can use IdleKit to design and produce their own games.
Then you’ve also got the fact that LEAF is extremely active when it comes to mergers and acquisitions, too. This is what it considers the third pillar of its business.
You see, the team spends a lot of time and energy monitoring the industry and targeting potential partners and developers who might complement its work.
Often, in fact, the team can spot these potential acquisitions because the company in question has already been using LEAF’s technology platform—due diligence in real-time, if you like.
An excellent example came in March when the company signed an LOI for the acquisition of Truly Social Games—a firm that has already developed several games on IdleKit that were subsequently published by LEAF.
As CEO Darcy Taylor points out to us, the insights provided by these IdleKit relationships—of which there are now many—lay the foundation for more potential M&A activity in the future…
“…WE’VE HAD A VERY SUCCESSFUL M&A AGENDA TO DATE. IT’S ONE OF OUR CORE STRATEGIES FOR ACQUIRED GROWTH […] AND WE’LL CONTINUE TO LOOK FOR OPPORTUNITIES AS A DISCIPLINED BUYER TO ADD SCALE AND IMPROVE OUR COMPETITIVE ADVANTAGE.”
It’s clear that LEAF is a company with a focus on growth.
By developing games that people want, providing a tech platform that helps to boost revenue, and actively pursuing smart partnerships and acquisitions…
It now looks like it is set to achieve it.
STRONG FUNDAMENTALS AND AN EXPERIENCED MANAGEMENT TEAM KNOW HOW TO STEER THE SHIP
Despite its immense size, the mobile games industry is still relatively young.
And certainly, there are many in the industry that are somewhat short on the experience needed to drive a company through what could be a period of rapid growth for many.
That is not the case with LEAF.
CEO Darcy Taylor himself has over 20 years of experience in entertainment and technology, having had senior leadership roles at IMG Canada (now Endeavor LLC), Logic Technologies Inc, and JT International…
And he has assembled a team of experts in both business and gaming, including Jason Bailey, the founder of Canada’s leading independent gaming studio, and Jim MacCallum, a proven CFO with over 20 years of experience in capital markets and acquisitions.
Indeed, with an experienced management team and a super-smart board in place too, LEAF has no shortage of talent to steer the ship.
Not only that, but on the fundamentals front, it has significant cash on its books and is fully funded to pursue its growth plans this year.
The bottom line here is simple:
LEAF is an exciting and experienced company in an exponentially growing industry.
Smart investors will recognize this immediately as a clear recipe for success.
So, as the mobile gaming space continues to attract more and more attention…
And ahead of a new series of games being launched and new deals being announced…
Now could be the perfect opportunity to take advantage and invest in LEAF on the ground floor.
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