With huge technological advances, video games have come a long way since first introduced to the public becoming a multi-billion dollar industry. According to a Newzoo Global Games Market Report released in April 2017, 2.2 billion gamers across the globe are expected to generate $108.9 billion in game revenues in 2017. This represents an increase of $7.8 billion, or 7.8%, from the year before. Digital game revenues will account for $94.4 billion or 87% of the global market.
This site is a unique digital subscription box service that caters to computer game enthusiasts around the world. Its mission is to connect customers with great games from great developers worldwide. The service provides its subscribers a number of random digitally downloaded computer games per month for the term of their subscription plan.
The site has been experiencing explosive year over year growth with sales and profits up significantly in Jan-Aug 2017 over the same period in 2016. As a subscription based model, it has recurring revenues with low overhead and ease of operation. The business is operated by one owner working approx. 1-2 hours per week handling support issues, site performance, game purchases and stock levels. There is also one contractor located in the Philippines handling live chat, email support and account management. All inventory is digital and the company tends to stock a minimum of 20,000 games with a current value of approx. $2,000 USD. With no physical inventory to manage, this website business is home-based, easily relocatable and can be operated from any location with internet access.
The company’s high growth, impressive margins, subscription based model in a gaming industry which continues to grow in popularity through new technology, make this business an excellent acquisition. Having demonstrated huge success in its niche market and yet with still lots of room for expansion ahead, the timing couldn’t be better to acquire this business and ride its wave of growth!
Listing Price £770,000 GBP
TTM Gross Revenue £297,481 GBP
TTM Cash Flow £259,529 GBP
Listing Price $1,000,000 USD
TTM Gross Revenue $386,725 USD
TTM Cash Flow $337,387 USD
*Converted from GBP to USD based on the exchange rate of 1.32 on 8/1/17. USD equivalent at time of sale will vary based on exchange rates.