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Emerge Gaming Limited (AU:SP8)
ASX:SP8
Australian Market

Emerge Gaming Limited (SP8) AI Stock Analysis

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AU

Emerge Gaming Limited

(Sydney:SP8)

Rating:44Neutral
Price Target:
Emerge Gaming Limited is challenged by profitability issues despite revenue growth. The balance sheet is strong with no debt, but cash flow problems hinder liquidity. Technical analysis is inconclusive due to insufficient data, and the valuation is unattractive with a negative P/E ratio. These factors contribute to a low overall stock score.

Emerge Gaming Limited (SP8) vs. iShares MSCI Australia ETF (EWA)

Emerge Gaming Limited Business Overview & Revenue Model

Company DescriptionEmerge Gaming Limited (SP8) is a company operating in the digital entertainment and gaming sectors. It focuses on providing cloud-based gaming services and platforms that enable users to engage in competitive gaming experiences. The company leverages its technology to offer a seamless gaming experience across various devices, catering to both casual and competitive gamers.
How the Company Makes MoneyEmerge Gaming Limited generates revenue primarily through its cloud-based gaming platforms, which offer subscription services, in-game purchases, and advertising opportunities. The company partners with game developers and publishers to host and promote their games on its platform, earning a share of the revenue generated from these games. Additionally, Emerge Gaming may collaborate with brands for sponsorships and advertising campaigns, leveraging its user base to drive engagement and exposure for these brands. Its earnings are significantly influenced by user growth, platform engagement, and strategic partnerships within the gaming industry.

Emerge Gaming Limited Financial Statement Overview

Summary
Emerge Gaming Limited shows revenue growth but struggles with profitability, reflected by consistently negative net income and margins. The balance sheet is stable with no debt, but cash flow challenges indicate potential liquidity issues. Overall, financial performance is mixed, with revenue growth overshadowed by profitability concerns.
Income Statement
45
Neutral
Emerge Gaming Limited shows a volatile income statement with fluctuating revenues and consistently negative net income. While revenue has grown from 2019 to 2024, the company struggles with profitability, evidenced by negative EBIT and EBITDA margins across years. The net profit margin remains negative, indicating difficulties in managing costs relative to revenues.
Balance Sheet
60
Neutral
The balance sheet of Emerge Gaming Limited is relatively stable, with no debt, resulting in a favorable debt-to-equity ratio of zero. However, the declining equity over the years may pose a risk. The equity ratio remains healthy, indicating strong asset coverage by equity. Despite these strengths, the absence of debt means potential leveraging opportunities are not utilized.
Cash Flow
50
Neutral
Cash flow analysis shows Emerge Gaming Limited has been challenged by negative operating cash flows in recent years, although there has been a significant improvement in investing cash flow in 2024. The free cash flow remains negative, indicating potential liquidity issues, but a better position than past performance due to increased cash and cash equivalents.
Breakdown
TTMJun 2024Jun 2023Jun 2022Jun 2021Jun 2020
Income StatementTotal Revenue
2.05M1.81M1.76M671.22K251.83K0.00
Gross Profit
684.52K138.61K436.72K75.97K80.30K-2.17K
EBIT
-1.91M-3.33M-4.88M6.25M-1.60M-1.29M
EBITDA
-1.99M-1.96M-4.43M6.27M-1.59M-1.29M
Net Income Common Stockholders
-104.21K-1.54M-3.45M6.78M-1.25M-1.29M
Balance SheetCash, Cash Equivalents and Short-Term Investments
13.80M14.35M15.40M17.87M15.88M1.99M
Total Assets
16.25M16.42M18.22M22.44M24.95M2.04M
Total Debt
0.000.000.000.000.000.00
Net Debt
-13.78M-14.35M-6.40M-17.87M-15.88M-1.99M
Total Liabilities
1.35M1.37M1.86M3.16M12.90M256.67K
Stockholders Equity
14.90M15.05M16.36M19.28M12.05M1.78M
Cash FlowFree Cash Flow
-748.70K-1.06M-2.98M289.67K4.93M-1.19M
Operating Cash Flow
-744.86K-1.05M-2.97M306.24K4.98M-1.19M
Investing Cash Flow
13.98M8.99M-8.49M1.73M-48.38K0.00
Financing Cash Flow
0.000.000.000.008.81M20.00

Emerge Gaming Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
60
Neutral
$14.21B6.47-3.76%3.69%2.48%-35.46%
AUSP8
44
Neutral
AU$10.25M-0.70%-7.44%97.44%
AUSLZ
44
Neutral
AU$1.50M-7.86%37.50%
AU8CO
41
Neutral
AU$4.71M-349.78%-10.57%67.60%
AUBRN
40
Underperform
$450.91M-133.28%72.47%20.08%
AUAKP
23
Underperform
AU$181.10M
-100.00%44.26%
* Communication Services Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
AU:SP8
Emerge Gaming Limited
0.01
0.00
0.00%
AU:BRN
BrainChip Holdings
0.22
-0.05
-16.98%
AU:8CO
8Common Ltd
0.02
>-0.01
-33.33%
AU:AKP
Audio Pixels Holdings Limited
6.20
0.00
0.00%
AU:SLZ
Sultan Resources Ltd.
0.01
0.00
0.00%

Emerge Gaming Limited Corporate Events

Streamplay Studio Reports Strong Growth and Strategic Expansion
Apr 29, 2025

Streamplay Studio Limited reported a significant increase in customer receipts, with a rise of 827% to A$1.65M in the quarter ending March 2025, largely due to the successful integration of Noodlecake Studios. The company closed the quarter with a strong cash balance of A$7.7M, no debt, and is focused on expanding its publishing footprint and investing in R&D initiatives. Noodlecake Studios, now a wholly owned subsidiary, achieved A$2.7M in revenue and is expanding its game offerings, including the upcoming mobile launch of Ultimate Chicken Horse. Regionally, Streamplay optimized its mJams music streaming application in the Pacific, achieving cost savings and focusing on local content partnerships.

Emerge Gaming Limited Strengthens Corporate Governance with New Trading Policy
Apr 22, 2025

Emerge Gaming Limited has released a new securities trading policy for its key management personnel, which includes directors, executives, and employees reporting to the Executive Director. The policy aims to prevent insider trading by providing guidelines on the timing of securities transactions, emphasizing the importance of long-term holding, and extending beyond the requirements of the Corporations Act 2001. This policy is expected to enhance corporate governance and protect the company from legal liabilities associated with insider trading, thereby strengthening its market position and ensuring compliance with regulatory standards.

Streamplay Studio Launches ‘Sacre Bleu’ Globally on Nintendo Switch and Steam
Apr 17, 2025

Streamplay Studio Limited has announced the global launch of ‘Sacre Bleu,’ a bullet-time action platformer developed by Hildring Studio, on Nintendo Switch and PC via Steam. This release marks Streamplay’s first global title launch on these platforms, highlighting the company’s strategic focus on platform diversity and expanding its presence in the gaming industry. The game, set in 17th century France, combines stylized 3D visuals with physics-based combat and has garnered significant interest from players and content creators.

Streamplay’s Noodlecake Studios Reports Strong Q1 Performance Post Acquisition
Apr 14, 2025

Streamplay Studio Limited announced a strong first quarter performance for its subsidiary Noodlecake Studios, following its acquisition in January 2025. Noodlecake reported approximately A$1.38 million in receipts and A$2.7 million in revenue, showcasing a robust start to the fiscal year. The company highlighted several key achievements, including the successful pre-orders of ‘Super Flappy Golf’, approval of ‘Possessions’ on Google Play Pass, and the upcoming release of ‘Ultimate Chicken Horse’ for mobile. These developments, along with strategic partnerships and a strong pipeline of new game pitches, are expected to drive continued growth and diversification for Streamplay. The weakening Australian dollar has also provided a financial advantage through USD and CAD-based receipts, bolstering the company’s cash position.

Streamplay Studio Clarifies Trading Activities and Confirms Compliance
Apr 9, 2025

Streamplay Studio Limited addressed queries from ASX Compliance regarding trading activities during a closed period. The company clarified that no trading occurred during a blackout period due to the timing of its financial book closure following an acquisition. Streamplay confirmed compliance with listing rules and plans to review its securities trading policy to eliminate ambiguities. This announcement reassures stakeholders of Streamplay’s adherence to governance policies and its commitment to transparency.

Streamplay Studio Addresses Late Lodgement of Director’s Interest Notice
Mar 24, 2025

Streamplay Studio Limited announced a late lodgement of an Appendix 3Y ‘Change of Director’s Interest Notice’ due to an administrative oversight regarding shares acquired by Director Mr. Paolo Privitera. The company assured stakeholders that this was an isolated incident and affirmed its compliance with ASX disclosure requirements, indicating that its current practices are sufficient to prevent future occurrences.

Streamplay Studio Limited Reports Reduced Losses and Strategic Expansion
Feb 28, 2025

Streamplay Studio Limited reported a significant reduction in its consolidated operating loss after tax for the half-year ending December 2024, down to $177,809 from $1,615,995 the previous year, thanks to cost optimization efforts. The company strengthened its position in the Pacific region and expanded its services in South Africa and the Middle East, enhancing its global footprint. Streamplay also acquired Noodlecake Studios Inc., a North American indie gaming company, aligning with its strategic direction for expansion. The company maintained a strong cash position of $13.78 million, supporting ongoing growth and strategic initiatives.

Streamplay Studio Launches ‘Super Flappy Golf’ in Key Markets
Feb 20, 2025

Streamplay Studio Limited has launched ‘Super Flappy Golf,’ the third installment in its successful Flappy Golf series, marking the company’s first major original game release in years and a significant milestone in the Australian market. This launch is part of Streamplay’s strategy to expand its first-party revenue, leveraging enhanced monetization tools and an increasing player base, with expectations of further growth and strengthening its position in the global mobile gaming market.

Streamplay Studio Expands Gaming Portfolio with Noodlecake Acquisition
Feb 14, 2025

Streamplay Studio Limited has announced the completion of issuing 130,000,000 fully paid ordinary shares to advisors for acquiring Noodlecake Studios Inc. and an additional 740,741 shares for employees and consultants in lieu of salaries and bonuses. This strategic move confirms compliance with the Corporations Act and positions Streamplay to leverage Noodlecake’s innovative capabilities, enhancing its market presence in the casual and indie gaming sectors.

Streamplay Studio Limited Issues Securities in Lieu of Salary
Feb 14, 2025

Streamplay Studio Limited announced its decision to issue securities to employees and consultants as a substitute for salary or bonus payments. The move involves quoting 740,741 ordinary fully paid securities on the ASX, potentially impacting company operations by conserving cash and aligning employee interests with company performance.

Streamplay Studio Limited Announces Quotation of 130 Million Securities
Feb 14, 2025

Streamplay Studio Limited has announced the quotation of 130,000,000 fully paid ordinary securities under the ASX code SP8, effective February 14, 2025. This move is part of previously announced transactions and is expected to influence the company’s market positioning by potentially increasing its capital base and liquidity, offering stakeholders enhanced investment opportunities.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.