NEW YORK, Nov. 19, 2014 /PRNewswire/ -- Analyst Brief by Small Cap IR – MGT Capital Investment Inc. (NYSE MKT: MGT) announced today the reporting of financial results and operational developments for the fiscal third quarter ended September 30, 2014. MGT reported a 600% growth of revenue, with majority being generated by its fantasy sports platform DraftDay.com. MGT also reported significant reductions in operating costs achieved by lowering stock-based compensation, professional fees and corporate governance related costs.
In October, MGT announced the first social daily fantasy sports platform on Facebook which is expected to increase revenue significantly once it has completed beta testing. MGT is currently working with Facebook marketers to maximize impact of the commercial launch in the upcoming weeks.
Management is optimistic on the outlook for the remainder of 2014, expecting to nearly triple revenue by year end and continue growth in to 2015. Robert Ladd, MGT's Chief Executive Officer made the following comments: "The third quarter demonstrated continued development and growth of our daily fantasy sports platform. As we execute, we remain confident that our shareholders will benefit greatly from the rapid expansion of this industry. Recently, the top two sites were accorded extremely high valuation metrics by prominent venture capitalists, and the professional sports leagues have fully embraced the space. The player liquidity and technology platform of DraftDay.com are valuable assets that are very costly, time consuming and difficult to replicate. We continue to be active in white label and other partnership discussions in order to drive revenue growth".
The general trend observed year over year in the recent financial results shows a favorable move in both revenue generation and expense reduction. These factors are likely what caused the surge in the attention MGT received from investors on today's trading. Closing 31% higher on volume approximately 300% above average, the share price is challenging a recent resistance level observed over the last month.
The analyst brief with recommendation on MGT Capital Investment:
http://bit.ly/-MGT--AnalystBrief
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