Exclusive Interview with Darcy Krogh, CEO of Global Daily Fantasy Sports Inc.
16.11.2018 - 14:12 by Profiteer
Insider buying in the last couple of weeks and a lot of news by the company were good reasons to conduct an exclusive interview with Darcy Krogh, CEO of Global Daily Fantasy Sports Inc..
Exclusive Interview with Darcy Krogh, CEO of Global Daily Fantasy Sports Inc.
Quelle: www.youtube.com/watch?v=8K9OwcANvfo
Profiteer: What are the big advantages for online gaming operators to adopt your Daily Fantasy Sports (DFS) platform?
Darcy Krogh: We contend there are 3 main reasons why an operator should consider our Daily Fantasy product. The first is for customer engagement, this product keeps the user activated either through their PC or Mobile device to the operators website for a much longer period. Whether it’s for constructing a team or simply watching their team perform while real world matches are running and they are consumed by how they are doing on the leaderboard. The product keeps them engaged affording them many cross selling opportunities.
Second would be customer acquisition, the product is geared to attract a younger demographic a social and skill based bettor. The millennial demographic (18-35) age group is the new generation of bettor and sought after by many gaming operators so this product bodes well to attract this specific demographic. Finally it’s an additional revenue stream that compliments their current sports betting business. From a product perspective, there has been very little innovation in digital sports betting business recently so we feel this is extremely complimentary and doesn’t cannibalize their core businesses and Global provides a seamless path for any operator and their users to enter our network through their legacy systems. We make this as easy as possible and help them market the product to their databases with our managed services.
Profiteer: How fast can your DFS platform technology be implemented?
Darcy Krogh: Every client is different depending on the integration work required into their legacy systems. Typically from start to finish with all branding and testing 45-60 days.
Profiteer: What is the projected Return on Investment for your clients?
Darcy Krogh: Each contest that we run in our network is raked 10-12% typically. This is very similar to the poker model so the operator has limited risk and is very familiar to this model. We revenue share with our operator clients on this raked percentage. Every commercial deal is different depending on how much work we do and the size of the client but typically its an 80/20 revenue sharing arrangement with our clients getting the larger share.
Profiteer: At the moment, DFS.V is already big in Italy with clients such as Lottomatica (16 million gamblers) and Sisal (14 million users). Which other European countries are your top priorities now and why?
Darcy Krogh: The UK, Germany, and Scandinavian counties are high on our Euro list because they are large sports/betting markets and their passionate about Football.
Profiteer: Global Daily Fantasy Sports has recently signed a three-year agreement with Malta-based Omega Systems to be a provider of the company's daily fantasy sports product to licensees of Omega's platform. With Rebels Gaming, you just signed a first client that comes through this new partnership. How many Omega clients would be suitable for your DFS platform?
Darcy Krogh: Pretty much all of them. Omega has a number of meaningful clients who use their digital platform and they have a unique business model. Their clients have access to all their third party content integrated. We are fortunate to be their only daily fantasy sports product so any customers wishing to join our network will be seamless for them to do so. We look forward to a close working relationship with Omega and its part of our strategy to work with as many content aggregators in the market as possible. This way its keeps our integration work down to a minimum.
Profiteer: A lot of telecommunication companies are looking for ways to monetize their huge data bases of users and make some extra money. Are you also targeting these telcos?
Darcy Krogh: I’m not at liberty to say right now our plans for this potential customer category but I can say this is on our radar and hope to make some announcements in the coming weeks. Our product is not just suited for sports betting brands so any meaningful digital database whether it’s a Media company, Telco’s or Lottery Companies would all be potential customers to take our product and join in our network.
Profiteer: At the beginning of October, Global Daily Fantasy Sports was shortlisted for Best DFS Product at the 2018 SBC Awards. These awards, organized by SBC - Sports Betting Community, recognize and reward expertise and innovation in the betting and gaming industries. How do you see your chances to win this award in December?
Darcy Krogh: Recognition is nice and the team should be proud of their accomplishment to date to even be nominated. We only just celebrated or 2nd year anniversary since we started our company from a standstill but we have a long way to go to achieve our goals. If we win that would be a great feather in our cap but we are focused on what we can control and unfortunately that’s not awards.
Profiteer: The company’s revenues are projected to grow to $2.0M, then more than double in 2020 to $7.7M with $2.4M in net income. For FY 2021, you are expecting revenue of $14.5M with $7.7M in net income. Based on a market cap of $6.5M, DFS.V is currently trading with a price earnings ratio (FY2021) of less than one! This looks like an incredible investment opportunity. Are there any analysts covering DFS.V?
Darcy Krogh: We are taking a new business into new markets we think our forecasts are defendable with conservative assumptions. It’s very difficult forecasting new ventures due to the lack of operating history but we do our best. Yes we do think it’s an incredible opportunity and why we are chasing the vision and when we execute on plan our current market cap is ridiculously cheap. We have had some nice articles written about us but to date no analyst coverage.
Profiteer: How are you deploying the capital from your recent financing? Any M&A activities planned?
Darcy Krogh: The net proceeds from the Offering will be used to fund sales and marketing programs in core European jurisdictions, to enter new markets, to fund ongoing development costs as well as for general working capital and corporate purposes.
Always looking at M & A opportunities that make sense to grow our business and add to shareholder value. I’m a firm believer in growing a business organically and through M & A activity that makes sense.
Profiteer: What are the major milestones you want to hit with DFS.V in the next 12 months from now?
Darcy Krogh: Simple really we have spent the better part of 2 years in development and just launched our first network in Italy early in 2018 we will continue to add customers to this ring fenced jurisdiction. The major milestones for me for the next 12 months would be the launch of our dotcom network and establish our global market facing network which would include other European markets and potentially Asia, Africa and LATAM. In addition to this add 10-13 new customers to the company and exit our 2019 fiscal year cash flow positive.
Profiteer: Thanks for the interview and a lot of success for the future!
The translated interview in German can be found here:
Exklusivinterview mit Darcy Krogh, CEO von Global Daily Fantasy Sports Inc..
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