B2Digital Inc (OTCMKTS:BTDG) is a qualitative growth story, according to our analysis. The company is a brand in a high-growth industry (mixed martial arts pay-per-view and training) with positioning that suggests much bigger numbers lie on the horizon through its media, live sports, marketing, content production and distribution, and fitness facility segments as they ramp up and mature.
Importantly, the company has been operating in a niche that has been devastated by the pandemic, in terms of both its live sports and gym operations. But it has survived and even thrived through this period, picking up many new assets on the cheap and a sharply advanced positioning niche along the way.
That suggests big potential ahead as the context normalizes and we see these strategic investments begin to pay off in increase cash flows, heightened visibility, and snowballing scale.
However, while the story for BTDG is underappreciated (as we see it based on our analysis), it shouldn’t be overlooked that it is also starting to show signs of accelerating growth even before we get around the corner to a vaccine and more economically normalized environment.
A great example of this just went down over the weekend.
The Show
B2Digital Inc (OTCMKTS:BTDG) went into last weekend noting that “the B2 Fighting Series is heading into its biggest weekend ever, with two major MMA pay-per-view events, each primed to drive record PPV ticket sales on continued expansion in the Company’s B2InstaStore marketing platform.”
As was previewed in the release, HRMMA 116 in Elizabethtown, Kentucky, featured Contender Series veteran, Lance “The Tornado” Lawrence, who put his 5-1 Pro record on the line versus Adli “Sunshine” Edwards, who brought his 7-1 Pro record into the B2 Fighting Series cage for a highly anticipated war celebrating the 12-year anniversary of HRMMA. Sunshine rose to the challenge and defeated the Tornado in a crowd-pleasing unanimous decision.
Then, on Saturday, November 7, B2 headed to the Faucett Brothers Activity Center in Northport, Alabama for explosive MMA action at Strikehard 57, which featured a number of hard-hitting action-packed pro and amateur fights.
Greg P. Bell, Chairman & CEO of B2Digital, commented, “With another packed weekend of high-level fights ahead, we look forward to another B2 Fighting Series success as we continue to develop our fighters for the big leagues. Pre-event PPV ticket sales for these two events have had the highest pre event PPV ticket sales to date. This weekend could set a new Company record for PPV sales on its own. Come join us over live streaming coverage, Amazon Fire TV, or Apple TV and see what the excitement is all about!”
According to the company’s release, “Management notes that the Company’s B2InstaStore platform has now generated nearly 300 storefronts as B2 Fighting Series fans, followers, and fighters help drive PPV ticket sales with growing impact.”
In Other Words…
The big point here is this: B2Digital Inc (OTCMKTS:BTDG) is piling up game-changing growth even before we move outside the pandemic context. That portends a very promising around-the-corner reality ahead, according to our analysis, because it demonstrates clear momentum amid headwinds – which are destined to resolve as the vaccine gets traction early next year.
This is a media company targeting live sports and gym memberships. Both of those ideas have grown despite headwinds outside of the company’s control. We aren’t far from seeing those headwinds resolve. And when they do, BTDG is likely to be in a qualitatively better position, perhaps by a wide margin.
This performance piles onto the fact that we have seen a big expansion in distribution reach, with the company adding access to both Amazon Fire TV and Apple TV over the past few weeks, which may have added an addressable OTT market reach of over 70 million new potential viewers, based on data from Ampere Analytics and quoted in the Wall Street Journal earlier this year.
That jump in potential reach comes on the heels of the company’s establishment of its B2InstaStore marketing model, which provides a convenient, fast, and simple way to sign up for the Company’s new B2 Social Media Storefronts platform, where fans and followers can actually get a piece of the action by helping to sell PPV tickets for BTDG events.
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