Why the Emerge Gaming (ASX:EM1) share price is up 11% today

The company is having a bumper day after announcing its gaming platform has reached 1 million paid subscribers.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Emerge Gaming Ltd (ASX: EM1) share price opened as much as 20% higher to 4.6 cents this morning after the company announced a subscriber milestone for its MIGGSTER gaming platform.

At the time of writing, the company's shares have pulled back slightly to 4.2 cents, still up by 10.53% for the day so far.

gaming asx share price fall represented by child looking frustrated while playing digital gaming device

Image source: Getty Images

What's driving the Emerge Gaming share price?

Emerge Gaming shares are on the move today after the company announced it has surpassed the 1 million paid subscriber milestone for its MIGGSTER platform.

MIGGSTER aims to build an online gaming community with features such as chat, friends and team functionality. Users can pay a monthly subscription fee of A$12.00 per month or an annual subscription of A$113 to access more than 100 games and participate in all worldwide tournaments.

Emerge described the 1 million paid subscriber figure as a key milestone in reaching its goal of "building a globally recognised community which will enable the company to target a broader audience and additional revenue opportunities".

Commenting on this achievement, Emerge Gaming CEO Gregory Stevens said:

I am excited by the achievement of this milestone for the MIGGSTER platform and the progress of our overall growth strategy in Emerge. MIGGSTER demonstrates that our platforms are globally scalable in a profitable manner – it provides an excellent, real world case study which we will use to unlock other opportunities with new partners. Our next milestone is to achieve a 1.5 million paid subscriber community size across all products. As part of the first phase of this growth strategy, we are seeking to rapidly grow subscriber numbers by offering a variety of discounted promotional offerings to prospective subscribers

Foolish takeaway

Emerge Gaming shares have surged by more than 130% over the past 12 months. Year to date, however, the company's shares are not faring so well, and are down by nearly 47%. Based on the current share price, Emerge has a market capitalisation of around $47 million.

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. 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.

More on Communication Shares

A man points at a paper as he holds an alarm clock.
Communication Shares

Is now the time to buy Telstra shares for passive income?

Let's take a look at the history of Telstra dividends and the level of passive income the telco is expected…

Read more »

man looks at phone while disappointed
Opinions

Was I dumb to sell my TPG shares?

Do I regret not owning a piece of TPG as its profits begin to rebound?

Read more »

a woman in business wear looks at her phone against the window of a high rise space with a city landscape view of tall buildings outside.
Communication Shares

Own Telstra shares? Here's how the ASX 200 telco is raising $650 million

Telstra will undertake its biggest Australian bond raise since 2017.

Read more »

A farmer stands in a field using his mobile phone
Share Market News

Looking to buy Telstra shares? Boss reveals 'profound opportunity' for growth

This particular sector could be a boost for Telstra shares.

Read more »

Concept image of a businessman riding a bull on an upwards arrow.
Broker Notes

Why is Macquarie so bullish on Telstra shares?

This top broker foresees 11% share price growth over the next year.

Read more »

A group of people of all ages, size and colour line up against a brick wall using their devices.
Communication Shares

Broker gives its verdict on the Telstra share price post-results

This telco giant's half year results went down well with analysts...

Read more »

A woman shows her phone screen and points up.
Communication Shares

Telstra share price higher on half-year revenue and earnings beat

Telstra has outperformed expectations during the first half of FY 2023.

Read more »

A happy man and woman sit having a coffee in a cafe while she holds up her phone to show him the ASX shares that did best today.
Earnings Results

Telstra share price on watch amid strong half-year profit growth

Hold the phone! Telstra has delivered strong growth during the first half

Read more »