You're wondering how to invest in Astralis. Maybe you're not sure if you should get into the whole esports market. Well, according to a report by Statista, the Esports industry is expected to grow to almost $1.6 billion by 2023. Its current valuation is at $1.1 billion, which would mean a 45.5% increase in 3 years. Esports' industry is not a recent market, but investment opportunities are growing every day.
More and more celebrities are getting in on this market, such as David Beckham with his Esports team, Michael Jordan, Steph Curry, and many more investing in the industry. Esports, in general, has a $5 average revenue per enthusiastic viewer. This is 18 times lower than that of the major baseball league, or hockey leagues in the US. So, there does seem to be a lot of potential in this industry. If you want to invest in Astralis, here are the steps to follow.
To invest in Astralis, open a brokerage account. After you've done that, you'll need to provide some details for security & identification purposes. Finally, head over to Prices on the top menu bar and find ASTGRP with the search bar tool or under Shares. That's it!
As more money comes in, bigger sponsorship and advertising deals are made by these organizations. That's the reason so many of them went public and why many more will probably do the same. If you're a trader, you have a huge opportunity, as long as you make the right moves. In this article, we'll cover how to invest in Astralis the right way.
This company is a global esports front runner with winning teams in League of Legends, FIFA, and one of the most dominant teams ever seen CS:GO history. They hold rights in the premium leagues for League of Legends (LEC) and Counter-Strike Global Offensive (Pro League and BLAST). In 2019, Astralis was listed on Nasdaq Copenhagen.
They make their revenues primarily through sponsorships, merch, and gaming tournament prizes. In 2019, the Astralis Group’s total revenue from the sale of merchandise accounted for 14% of the adjusted total revenue. Their three teams represent the major human capital assets of the company and Astralis prides itself on its high track record and elevated performance, especially in Counter-Strike.
As a result of their performance, Astralis has grown quite a follower base on Instagram with more than 300K followers. Their engagement per post is also impressive, with more likes per share than teams like Manchester United or NY Knicks.
Astralis' stock (ASTGRP) is listed on Nasdaq Nordic. The main reason this company went public was to fund their league buy-ins. Their teams' performance is the biggest source of earnings and prizes. Below, we'll cover the details on their IPO and how to invest in Astralis' stocks.
Astralis Group's IPO
In December 2019, Astralis Group released the prospectus for its IPO alongside a planned share subscription period. The goal was to raise DKK 125 million (US$18.5 million) to DKK 150 million (US$22.2 million) through the sale of around 16.7 million new shares in the company.
How Astralis divided their investments
Regarding the invested capital, Astralis used 50-60% of the money raised to secure a placement in major tournaments for their esports' teams in Counter-Strike: Global Offensive, League of Legends, and EA’s FIFA. The remaining funds were used for other purposes. Astralis Group used 15-20% of funds to reach a broader audience and the rest to digital products and their current brand portfolio.
According to the prospectus, Astralis Group’s revenue for the first three quarters in 2019 was DKK 29.2 million (US$4.3 million). Sponsorships and tournament earnings made up two of the company’s key revenue streams at DKK 14.5 million (US$2.1 million) and DKK 11.4 million (US$1.6 million), respectively. Despite the income, however, the group’s EBITDA margin during this time period was -66.7%.
In terms of the IPO, their share seems to open a bit higher than expected and then fell to a level of around 9 DKK per share. Their expected revenue is 41.5 million DKK, and with a valuation of around 500 million DKK, they have a P/S ratio (price to sale) of 12.
This means they are trading at 12 times their year’s revenues. Compared to bigger brands, Astralis Group has a much higher P/S ratio. To put it in perspective, Activision Blizzard Inc, creators of Call of Duty and leaders in the esports market, has a P/S ratio of around 6.
This could mean Astralis' stock is a bit overvalued. Yet, Activision Blizzard Inc is investing in several businesses other than the esports market, so take this comparison with a grain of salt.
Astralis expects to land between DKK 60 million and DKK 70 million (US$8.8 million to US$10.4 million) with 2020’s net revenue. In 2021, the expectation is for DKK 85 million to DKK 100 million (US$12.6 million to US$14.8 million). In this year, the company projects the first year to break-even.
The surprising part is the relation between Astralis' results and their valuation. A US$75.5 million valuation contrasted against US$6 million revenues in 2019 indicates a strong appetite for the esports market.
Besides having the top team in Counter-Strike, Astralis landed partnerships with several brands, including Audi, Turtle Beach, and Logitech. This is one of the main reasons why their valuation is 12 times higher than its current results.
In addition, the esports market is booming, as mentioned above. More and more investors are eager to get in on organizations such as Astralis Group.
How To Invest In Astralis
In this article, you have all the information you need on how to invest in Astralis. Before you get into it though, we definitely recommend you get familiar with the market itself. It's of no use to invest in a company if you don't know anything about the business sector they operate in. Learn how to invest in Esports first, and everything will become easier.
Open an account with a brokerage
- Open an account with a brokerage
First you'll need to find a broker that has Astralis stocks, we recommend DEGIRO to buy (ASTGRP).
- Identify yourself using passport or identity card
You decided you want to give it a go. Astralis Group definitely seems to be a growth stock and is a good investment for those looking for better than average returns. However, remember stocks are more volatile in nature and there are a lot of potential risks facing it.
This business revolves around people and very few important teams, which is inherently unstable. The investment decisions you'll make will be your responsibility, so we'll advise you to always be updated with the market.
If you want to start investing in Astralis, check out Degiro. This is a European brokerage company, based in Amsterdam. It has more than 60 international broker awards and covers a lot of international markets.
They're one of the safest platforms with the lowest fees on the market. After you've opened your account, you'll need to provide some details for safety purposes. After that, head over to Prices on the top menu bar. Then, find ASTGRP with the search bar tool or under Shares.
You'll be able to see more information on this share, and if you decide to invest click the green button which says BUY. That's it!