Mobile Game Publisher PopReach Is Well-Positioned In The 70-Billion Mobile Game Market

PopReach was one of the speakers at the Benzinga Global Small Cap Conference that took place on December 8-9, 2020.

Smurf’s Village, Kitchen Scramble, Gardens of Time, War of Nations, and Kingdoms of Camelot. If you recognize any of these games, you’re probably already familiar with PopReach Corp POPR POPRF.

The free-to-play mobile game publisher, with US$18 million in revenue and US$3 million in adjusted EBITDA in 2019, is well-positioned in a 70+ billion dollar gaming market. It’s a cash flow positive company with a unique risk-mitigating M&A strategy, with the capital to execute on its deal pipeline to expand its growth in 2021.

PopReach specializes in acquiring proven game franchises that already have large and well-established audiences, have been financially successful, but are at a later stage of their lifecycle. They acquire the games, bring them into their own operational infrastructure to revitalize them and improve profitability. 

“We actually buy just the game asset itself and we bring it into our own operational structure,” said Jon Walsh, CEO of PopReach. “That gives us a lot of control over what happens with the games, and gives us the ability to directly optimize them with our very experienced team.”

For PopReach, it’s a three-step process: 

1. Reduce the cost structure by bringing it in house.
2. Stabilize the revenue of the existing game. 
3. Optimize revenue among current and new players. 

Walsh and his partner Chris Locke, President & COO of PopReach, have built a pretty unique partnership. Walsh successfully built and sold Fuse Powered, a mobile game analytics and monetization platform that worked with some of the industry’s largest mobile game hits, and has a deep understanding of the analytics and optimization of key game KPI’s. And Locke is a highly successful game maker and studio builder (Smurf’s Village, Kim Kardashian Hollywood) in the free-to-play game industry. Together, both bring an extensive network across the global games industry of potential partners and potential assets to acquire.

To date, the Toronto-based company has acquired over 20 games with over 1 million monthly players in North America and Europe. 95% of its revenue is generated through in-app purchases, with an opportunity for revenue growth in advertising. The company is publicly listed on the TSX Venture Exchange and OTCQX. 

“The key to success in the free-to-play game industry, particularly on mobile, is that these games are living breathing assets and you have to constantly invest in them and keep them invigorated,” said Walsh. “At PopReach, we have a deep understanding of how to identify and efficiently manage these games to drive greater cash flows into the Company and create value for our shareholders.”  

To learn more about PopReach, click here.