It has been a very volatile day for the Emerge Gaming Ltd (ASX: EM1) share price.
In early trade the eSports and gaming technology company’s shares rocketed a sizeable 16% higher to 11.5 cents.
The Emerge Gaming share price has since given up all these gains and is now down 10% to 8.9 cents.
What is happening?
This morning Emerge Gaming released an update on the subscriber numbers for its MIGGSTER social gaming platform.
According to the company, the MIGGSTER platform is a gaming and eSports community, leveraging technology to deliver immersive gaming entertainment and social engagement to a global online network of gamers.
Through its platform, casual, social, and hardcore gamers can play hundreds of gaming titles against each other via their mobile, console, or PC and earn rewards and win prizes.
Last week the company’s shares came out of a lengthy suspension after announcing that it had achieved 25,674 subscriptions as of 7 December. This was out of a total of over 6 million pre-registrations.
Unsurprisingly, this low conversion rate didn’t go down particularly well with investors and led to the Emerge Gaming share price crashing 50% lower on the day.
Where are its subscriber numbers at now?
This morning the company revealed that it has now achieved 50,860 paying subscribers.
These subscriptions comprise 37,512 annual packages, 5,026 six-month packages, and 8,322 monthly packages.
The company also notes that it has an agreement with Tecnología de Impacto Múltiple (TIM) in which TIM guaranteed a minimum of 100,000 paying subscribers within six months of the launch of MIGGSTER. This means Emerge Gaming is now more than halfway to achieving this milestone.
As part of the agreement, if the target is not reached, TIM will pay Emerge Gaming 50% of the cost of prizes put up.
Management commented: “~74% of subscriptions sold to date are annual subscriptions. Emerge is encouraged by the strong growth of subscriptions and will continue to monitor and report on subscription numbers, platform usage and other key metrics as they transpire.”
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More reading
- Why Abacus, Emerge Gaming, Jumbo, & Woodside shares are dropping lower
- Why the Emerge Gaming (ASX:EM1) share price crashed 50% lower today
Motley Fool contributor James Mickleboro 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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