REG - Blue Star Capital - Dynasty Update

Blue Star CapitalAnnouncement

06/06/2024 07:00

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RNS Number : 3101R  Blue Star Capital plc  06 June 2024

6 June 2024

Blue Star Capital plc

 

("Blue Star" or the "Company")

 

Dynasty Update

 

 

Blue Star Capital plc (AIM: BLU), the investing company with a focus on
esports and blockchain and its applications within gaming and payments,
provides the following update for Dynasty Gaming & Media Pte Ltd
("Dynasty"), an investee company, as a result of Dynasty's first update to
shareholders following its acquisition of Googly Media Holdings Pte Ltd
("Googly").

 

Googly (India)

Dynasty's directors consider India to be one of the fastest growing gaming
markets in the world with more than 500 million gamers presently which is
expected to grow to 700 million in the coming years. Dynasty advises that it
has started to make progress in entering India's video gaming sector and,
despite some early challenges, has acquired more than 23,000 fully registered
users during its beta phase at a customer acquisition cost ("CAC") of c.
US$0.80 per user.

 

Dynasty has recently finalised agreements with Razorpay as its payment gateway
partner and expects to have its payment gateway live and operational within
the coming month.  This will enable Dynasty to start monetising its Beta
users while simultaneously commencing customer acquisition activities at
scale.

 

Let's Play Live Acquisition (Oceania)

Dynasty has agreed to acquire Let's Play Live ("LPL") in an all-share
transaction approximately for 15 per cent. of Dynasty's issued shares. Dynasty
has been operating its Australia & New Zealand platform business under a
50/50 joint venture with LPL since May 2023.

 

LPL is the largest gaming tournament operator and broadcaster in Oceania, and
the fastest growing in Southeast Asia, and the exclusive partner for many of
the world's leading publishers operating major gaming events in the region,
including Epic Games, EA, Riot Games, and Supercell.

 

Dynasty advises that the acquisition of LPL will provide it with strategic and
highly complementary capabilities in the areas of tournament organisation,
production, and broadcast and it will also deliver exclusive game event IP
from the world's leading games publishers.

 

The Dynasty board expects the transaction to be completed by 30 June 2024 and
for the LPL business to contribute positive cashflows from completion.

 

As a result of their cooperation to date, Dynasty and LPL have recently
delivered the following:

1.     Partnership Agreement signed with Revolut who become naming rights
sponsor for the Valorant Challengers Tour at the Oceania World Champs
qualifiers.

2.     An exclusive agreement signed for the Oceania region World Champs
Qualifiers with the global master rights holder for Fortnite, the biggest game
in the region. This event takes place next month and will provide significant
sponsorship and user engagement and monetisation opportunities.

3.     A Partnership Agreement signed with National Australia Bank ("NAB")
as their inaugural gaming partner for its new NAB Gateway, launching this
month. The NAB Gateway will provide a comprehensive payments solution for our
customers, including Visa, Master, Apple and Googly Pay, BNPL, recurring
payments etc.

 

Lightning Dragon (Philippines)

Dynasty's Lighting Dragon platform has been in an extended Beta phase while it
introduced payment gateway partners and content providers. Dynasty advises
that it has now integrated PayMaya into its platform, one of the Philippines's
leading e-wallet and payment gateway providers with 45m users.

 

Dynasty expects Lightning Dragon's to launch, with two major publisher-led
prize pool events, within the next quarter.  Its in-country partner, the Vera
Media Group, has committed to a considerable marketing and promotional spend
that the Dynasty board expects to drive significant platform growth.

 

Product Update

During the recent quarter, Dynasty launched User Generated Tournaments
("UGT"), which empowers users to create their own tournaments and use
micro-transactions to enhance their experience. This provides the creators of
UGTs the ability to earn fees from Dynasty's platform, effectively becoming
paid tournament organisers themselves.

 

In the second half of the year, Dynasty will launch its new Premium
Subscriptions product and seek to expand its subscriber base by making
subscriptions more accessible and appealing to a diverse range of users.

 

Strategy

Dynasty advises that its focus for the next few quarters will be on using its
unique content and significant publisher marketing support to maximise traffic
and monetisation across all platforms. with the objective of significantly
growing the number of registered users and paying subscribers.  The directors
expect to reach monthly cash flow break even within two quarters following
which they may seek to further expand into other revenue generating areas
including betting and AI and potential new platform launches in new geographic
areas, including the Middle East and Latin America.

 

Blue Star currently owns approximately 2.4 per cent of Dynasty.

 

For further information, please contact:

 

 Blue Star Capital plc         +44 (0) 777 178 2434
 Tony Fabrizi

 Cairn Financial Advisers LLP  +44 (0) 20 7213 0880
 (Nominated Adviser)
 Jo Turner / Liam Murray

 Axis Capital Markets Limited  +44 (0) 20 3026 0449
 (Sole Broker)
 Ben Tadd / Lewis Jones

 

About Blue Star

Blue Star is an investing company with a focus on new technologies. Blue
Star's investments include SatoshiPay Limited, an incubator and service
provider to de-fi businesses using blockchain technology; Dynasty Gaming &
Media Pte. Ltd., whose B2B white label platform is a full-stack gaming
ecosystem; and Sthaler Limited, an identity and payments technology business
which enables a consumer to identify themselves and pay using just their
finger.

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