The Emerge Gaming Ltd (ASX: EM1) share price is on course to end the week with a solid gain.
In early trade, the esports and gaming technology company's shares were up as much as 23% to 9 cents.
The Emerge Gaming share price has eased a little since then but is still up 5.5% to 7.7 cents at the time of writing.
Why is the Emerge Gaming share price storming higher?
Investors have been buying the company's shares this morning after it provided an update on the subscription numbers of its MIGGSTER social gaming platform.
According to the release, the MIGGSTER platform has now registered over 100,000 paying subscribers. This compares to 50,860 subscriptions in mid-December.
The company has verified that it has 100,387 subscriptions, comprising 74,366 annual packages, 10,488 bi-annual packages, and 15,533 monthly packages. Management notes that this means 74% of its subscriptions sold to date are annual subscriptions, which are sold at a price of EUR69.00 per annum.
The update reveals that the subscriptions are coming from all corners of the world, but predominantly in Asia. A total of 53% of subscribers are from China (32%) and South East Asia (21%).
In light of the above, the company estimates that MIGGSTER has generated EUR5.65 million (~A$ 9.16 million) in revenue to date.
However, due to its revenue sharing and commissions, the company estimates that it will retain approximately A$3.115 million or ~34% of the subscription value received.
This may have disappointed investors and led to its shares giving back some of those early gains. Especially given that earlier this month Emerge stated that "it has banked first cash receipts from the Emerge operated MIGGSTER social gaming platform to the value of AUD$8.3 million to 31 December 2020."
Outlook
No guidance has been provided. However, management advised that MIGGSTER subscriptions continue to show strong daily growth. It will continue to provide the market with material updates as and when they happen.
