The Esports Mogul (ASX:ESH) share price down 5% on mobile update

With the Esports Mogul share price already up 100% in 2020, could the company’s mobile announcement today draw more investor interest?

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The Esports Mogul Ltd (ASX: ESH) share price is down 5% in early afternoon trading. The fall comes after the company reported that its esports platform is going mobile.

Despite today’s fall, shareholders of the thinly traded stock who have held on through this bumpy year, with sharp downswings followed by even sharper rebounds, are currently sitting on a gain of 80% in 2020.

That compares to a gain of just over 2% for the S&P/ASX 200 Index (ASX: XJO).

What does Esports Mogul do?

Esports Mogul owns and operates an esports (online sports games) media and software business. Mogul brings together players, game developers and tournament organisers with an initial focus in Australia and Southeast Asia.

The company’s esports tournament and matchmaking platform offer automation for major esports titles with streaming functionality and in platform chat capabilities. Mogul’s revenue is derived from sponsors for its esports events and partnerships with brands.

What’s driving the Esports Mogul share price?

In an ASX announcement this morning, Mogul revealed it has begun its move into mobile with in-market beta testing of its Mogul App.

Currently, gamers wanting to play in mobile esport title tournaments do so online, via web platforms that includes the company’s mogul.gg. Mogul says its online move will give players and publishers “a world-first experience on one device”.

Esports Mogul said the global mobile games market is forecast to generate US$86.3 billion (AU$116.7 billion) in 2020. That already represents 49% of the total games market. And mobile is growing twice as fast as PC and console gaming.

The beta testing of the Mogul App is part of the company’s plans for a broader global release of its esports tournament experience for the largest gaming segment.

Commenting on the mobile rollout, Mogul CEO Michael Rubinelli said:

This is an exciting step on our progression towards becoming the definitive global esports destination for branded sponsors and player of all abilities, gaming interest, and location, independent of their platform of choice…. Players will be able to effortlessly create, host, and compete in all of the best branded mobile esports tournaments available anywhere.

With Esports Mogul’s share price sliding today, could today’s news have already been largely priced into the stock?

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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