Convert Attention, Capture Value. ESE Entertainment (TSXV: ESE) (OTC: ENTEF)
Disseminated on behalf of
ESE Entertainment Inc
CONVERT ATTENTION, CAPTURE VALUE.
ESE ENTERTAINMENT INC
TSXV: ESE | OTC: ENTEF
This communication is not an offer to buy or sell securities nor is it to be construed as personal investment advice. Nothing contained in this communication should be relied upon as a promise or representation as to future performance.
FORWARD: ATTENTION TO REVENUE, AT SCALE
The next leg of value in gaming won’t be won by the loudest logo – it’ll be captured by operators who convert attention into revenue – repeatably and at scale.
That’s ESE’s lane.
A full-stack execution platform (live production, SFX/AR-XR, broadcast, fabrication, post-campaign content) that turns budgets into outcomes for tier-1 clients—and increasingly, traditional sports.
Why now?
Because the ad dollar has migrated from “views” to attributed lift.
Publishers and blue-chip brands want partners who can design → produce → distribute → measure in one loop – and they’re consolidating spend accordingly. ESE’s model is built for that loop: multi-year contracts, recurring programs, and a cross-border asset base (Americas + Europe) that compounds utilization and margin.
The thesis is simple: stack renewals, widen average deal size, and keep attribution airtight.
If ESE Entertainment Inc (TSXV: ESE | OTC: ENTEF) continues to prove lift while scaling the platform (organically + M&A), the market will re-rate from narrative to numbers.
For broader industry context behind this setup, see our earlier thesis, “Multi-Billion-Dollar Gaming Industry,” which frames why gaming remains the most durable attention funnel in media.
EXECUTIVE SUMMARY
ESE Entertainment Inc (TSXV: ESE | OTC: ENTEF) represents a compelling investment opportunity in the rapidly expanding esports and entertainment production sector. As a “picks and shovels” provider, ESE delivers end-to-end live event solutions, including production, special effects (SFX), augmented/extended reality (AR/XR), broadcast execution, and custom fabrication, to tier-1 clients like EA, Activision Blizzard, and Riot Games.
With strong recurring revenue from multi-year contracts, a robust 2026 pipeline exceeding $25M, and a transformative acquisition poised to double revenue and EBITDA, ESE is positioned for significant growth.
At a current market capitalization of approximately ~$9.39M CAD (October 7, 2025), ESE trades at a deep discount to peers like OverActive Media (1.3x revenue multiple) and GameSquare Holdings (0.8x revenue multiple), as well as industry transaction multiples of 6-8x revenue seen in deals like the $1.05B sale of ESL.
Pro forma projections suggest $30-40M in revenue and $3-4M in EBITDA post-acquisition, implying the potential for substantial upside as the company scales and re-rates. This thesis will cover the potential this company has given accretive M&A, and sector tailwinds.
COMPANY OVERVIEW
ESE Entertainment Inc (TSXV: ESE | OTC: ENTEF) is a Vancouver-based global technology and entertainment company focused on gaming, esports, and live event production.
Through its Bombee platform, ESE provides comprehensive services for high-impact events, from concept development and strategy to logistics, venue sourcing, and post-event content creation.
The company has established itself as a trusted partner for major brands, leveraging its expertise to bridge esports with traditional sports and entertainment.
Key business segments include:
- Live Production and Event Management: Handling tournaments and activations for esports giants.
- Special Effects and Immersive Tech: Incorporating AI, AR/XR, and broadcast tools for enhanced experiences.
- Broadcast and Fabrication: Ensuring seamless execution for global audiences.
$ESE customer base is elite, including EA, Activision Blizzard, Riot Games, NHL, and WBC Boxing.
Notable projects include the ALGS Y4 Championship, Michelob Ultra Maxim Grand Prix Party, and DreamHack events.
The company’s acquisition strategy has already integrated Bombee Americas (completed in 2024) and is advancing with Bombee Europe, the continent’s second-largest SFX provider, to create a consolidated global platform.
Management is led by experienced executives:
- Konrad Wasiela (CEO & Founder): Oversaw $100M+ in gaming acquisitions; UBC graduate and former professional athlete.
- Andrea Hayward (CFO): 25+ years in public finance; grew Great Canadian Gaming to $3B market cap.
- Tamir Kastiel (CEO, Bombee Americas): Esports production expert with prior exits in gaming.
As of the latest data, ESE has ~125.19M basic shares outstanding.
MARKET OPPORTUNITY
The esports and entertainment production market is experiencing explosive growth, driven by demand for immersive, high-quality live experiences.
Traditional event production is fragmented, reliant on outdated workflows, and slow to adopt technologies like AI and AR/XR, leading to high costs and inconsistent quality. ESE Entertainment Inc (TSXV: ESE | OTC: ENTEF) addresses these pain points with scalable, tech-enabled solutions.
- Esports Market: Projected to grow significantly, with major transactions underscoring value – e.g., ESL (a core ESE customer) acquired for $1.05B (7x revenue) as part of a $1.5B deal by Savvy Gaming Group, and EA (another customer) involved in sector deals totaling $55B.
- Traditional Sports Production: Valued at $85-90B currently, expected to double by 2030 due to demand for 4K/8K, cloud, and remote broadcasting. In addition to its core esports focus, ESE is actively expanding into traditional sports events, tapping into this multi-billion-dollar TAM that complements its gaming expertise.
ESE Entertainment Inc (TSXV: ESE | OTC: ENTEF) is capitalizing on this by expanding into traditional sports, with secured contracts from major traditional sports properties, including NHL and WBC Boxing. Bombee Americas alone generated over $10M in revenue in the past 12 months, with strong projected growth.
COMPETITIVE ADVANTAGES
ESE Entertainment Inc (TSXV: ESE | OTC: ENTEF) stands out through:
-
- Tier-1 Client Relationships: Multi-year contracts with predictable revenue; contract sizes range from $200K-$1.5M at 22-25% gross margins.
- Recurring and Visible Revenue: Over $9M contracted for 2026, plus a $50M+ pipeline with a 50% historical win rate on RFPs.
- Scalable Platform: Bombee’s end-to-end capabilities position ESE as a global leader, with rapid expansion into new markets.
- Accretive Acquisitions: The upcoming Bombee Europe deal is highly accretive, enabling cross-selling and margin expansion.
- Proven Execution: Recent Bombee results show $3.7M in quarterly revenue (up 109% QoQ) and gross profit of $528K (14.1% margin), demonstrating operational efficiency.
These factors create high revenue visibility and stable margins, differentiating ESE Entertainment Inc (TSXV: ESE | OTC: ENTEF) from fragmented competitors.
FINANCIAL ANALYSIS
ESE Entertainment Inc (TSXV: ESE | OTC: ENTEF) financials reflect a transition from early-stage losses to profitable growth.
Based on provided updates and recent reports:
-
- 2025 YTD Performance: $10M+ revenue, $1-2M EBIT, supported by multi-year contracts.
- Recent Bombee Update (Q3 2025, ended Jul 31): Revenue $3.75M (up 109% QoQ), gross profit $0.53M (up >100%), margin 14.1%.
- Historical TTM (as of Jul 2025): Revenue ~$5.82M, EBITDA -$4.72M, net income -$6.03M (reflecting pre-growth investments).
- Estimated Pro Forma Projections Post-Acquisition: Revenue $30-40M, EBITDA $3-4M, driven by doubling current figures through integration. (This is speculation and what could potentially look like given the assumptions).
Growth is fueled by organic expansion (e.g., 50% RFP win rate) and M&A, with low capital intensity due to service-based model.
VALUATION
ESE Entertainment Inc (TSXV: ESE | OTC: ENTEF) is undervalued relative to peers and industry benchmarks in my opinion. Current market cap: ~$9.39M CAD.
This implies a forward revenue multiple of <0.3x on pro forma $30M revenue, versus:
- OverActive Media (OAM.V): MCAP $39.2M CAD, TTM revenue $30.1M (1.3x multiple), EBITDA -$7.15M.
- GameSquare Holdings (GAME): MCAP $73.85M USD ($103M CAD), TTM revenue $93.38M USD (~$130M CAD, 0.8x multiple), EBITDA -$20.75M.
Exploring accretive acquisition and applying a conservative 2x revenue multiple (in our opinion) to pro forma $35M yields a $70M target MCAP (~7x upside). At 10x EBITDA on $3.5M, target ~$35M (4x upside). Re-rating potential is interesting as ESE achieves profitability and scales.
All these projections are opinions and estimates.
RISKS
- Execution Risk: Integration of acquisitions could face delays, impacting projected synergies.
- Market Volatility: Esports growth depends on consumer spending; economic downturns could reduce event budgets.
- Competition: Larger players may enter the space, pressuring margins.
- Dilution: Shares outstanding at 125.19M basic, with potential for further issuance.
- Liquidity: Low market cap and trading volume may lead to price volatility.
Mitigants include strong client retention, contracted revenue, and experienced management.
CONCLUSION
ESE Entertainment Inc (TSXV: ESE | OTC: ENTEF) is at an inflection point, with recurring revenue, a high-visibility pipeline, and accretive M&A set to drive explosive growth in a $85B+ market.
Trading at a fraction of peer multiples despite superior client relationships and fundamentals, ESE offers asymmetric upside.
Investors should consider accumulating shares, targeting a re-rating as 2026 results materialize. This thesis is based on provided data and recent updates, substantiating ESE’s potential as a high-growth play in esports and entertainment production.
More information on ESE Entertainment inc, including its recent news releases, project overview and investor information package can be found here.
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