Moving iMage Technologies Expands into eSports Market with SNDBX Partnership

2023-09-26

In a recent earnings call meeting, the company discussed its position in the cinema industry, progress of new initiatives, and announced a tentative agreement for the writers' strike in Hollywood. The meeting focused on several key topics, with the most important being the agreement reached for the writers' strike.

One of the most intriguing outcomes of the meeting was the company's potential growth driver of eSports for fiscal 2024. The company has formed a partnership with SNDBX, a company aiming to create the Little League for amateur eSports. This partnership includes a multimillion-dollar supply agreement, a minority ownership position, a Board Advisory seat, and co-ownership of the related technology.

During the meeting, Rick Star, the founder of SNDBX, presented his vision for the Little League of eSports. This innovative concept involves setting up local amateur leagues in movie theaters, providing a unique entertainment experience that appeals to parents, kids, and theater owners alike. The company believes that entering the eSports market through this partnership with SNDBX can be a significant driver of growth.

Rick Star also mentioned having an active pipeline of over 2,500 locations in North America and 500 internationally, indicating a strong potential for expansion. Furthermore, he is currently raising funds to accelerate the establishment of these locations, demonstrating the company's commitment to seizing opportunities in the eSports industry.

Overall, the company's deep dive into the eSports market through its partnership with SNDBX presents a promising growth opportunity. With exclusive agreements, ownership positions, and a unique concept of hosting eSports leagues in movie theaters, the company is well-positioned to capitalize on the increasing popularity of eSports. The substantial pipeline of potential locations and plans for accelerated expansion further enhance their potential to benefit from the growing demand for eSports entertainment.

The company's key drivers of business include FF&E projects, proprietary manufactured offerings, and emerging products. FF&E projects, which involve procuring and reselling furniture, fixtures, and equipment for theaters, contribute significantly to the company's revenue. Additionally, the company sells higher-margin proprietary manufactured offerings separately, such as Caddy and ADA. They also expect their product mix to shift towards emerging products like MiTranslator, CineQC, and eCaddy, which will contribute to their growth.

In terms of product and service plans, the company aims to upgrade and improve its platform in collaboration with National Amusements, a large international movie circuit. They also have their sights set on expanding into other live entertainment venues and the eSports market. The company has entered into various agreements and partnerships in the eSports space and plans to establish local amateur leagues in movie theaters. They have an active pipeline of locations for this initiative.

The competitive landscape for the company is evolving in several ways. Firstly, they are upgrading their platform in collaboration with National Amusements to enhance their product offering. Secondly, they are expanding into other live entertainment venues and targeting the growing eSports market. Their partnership with SNDBX to develop the Little League for amateur eSports is seen as a significant growth driver. Lastly, they are developing applications and services to further differentiate themselves in the market.

The company's outlook for the quarter and year is positive, indicating optimism for future performance.

During the call, the participants included the speaker, Joe, and the operator. The speaker expressed gratitude to everyone for attending the call and mentioned their anticipation for the next call in mid-November. The operator confirmed that there were no questions at the time and concluded the conference. The meeting concluded with a thank you to the participants and an announcement of the next call in mid-November.