viewBlue Star Capital PLC

Blue Star Capital branches out into e-sports


Recently raised £900,000 to invest into e-sports franchises

Blue Star Capital - Blue Star Capital branches out into e-sports

Quick facts: Blue Star Capital PLC

Price: 0.095 GBX

Market: AIM
Market Cap: £3.03 m
  • Blue Star is tech investor with stakes in e-payments, e-sports and micropayments
  • Recently raised £900,000 to invest into e-sports franchises
  • Biggest holding is the stake in micropayments group SatoshiPay


What it does

In October, Blue Star Capital PLC (LON:BLU) signed agreements to invest £150,000 each into six e-sports teams around the world.

These companies are based in the UK, India, the US, Singapore, Australia and Canada and participate in a variety of sports.

Blue Star said: "Each of the companies will create or acquire a competitive esports franchise to generate revenue from tournament winnings, digital marketing opportunities, sponsorship, membership, merchandise and promotional tours and events."

Micropayments platform SatoshiPay ( Blue Star 27.9%) is currently valued at £4.6mln.

Biometrics payments provider Sthaler (1%) has developed the biometric Fingopay product, which is being trialled in Manchester, at certain universities and festivals.

How it's doing

An improvement in the value of 27.9% owned micropayment specialist SatoshiPay helped assets rise slightly to £5.1mln in the year to September, even though Blue Star itself posted a loss of £685,000.ed

SatoshiPay has just launched a joint venture with Axel Springer to enable readers to pay for the German publisher’s content using an e-wallet.

The company is also working on a cross-border payment system to allow companies instantly to transfer funds around the world.

Blue Star also has a small (0.9%) stake in Sthaler, which has developed Fingopay a widely lauded fingerprint recognition system that is currently on trial in Manchester and in Egypt.

What the boss says: Tony Fabrizi

"The last year was one of consolidation with our main portfolio companies making solid progress in developing their businesses.

“Post year-end, we have invested in a portfolio of esports businesses which offer significant potential and both SatoshiPay and Sthaler have more recently announced key strategic developments.



Inflexion points

  • Canadian entrepreneur David Lew will invest £100,000 and become chairman
  • SatoshiPay is expanding into the vast cross-border payments business
  • E-sports franchises becoem established

What the broker says: Ed Stacey, Proactive Research

"A strong investment performance could potentially be repeated going forward and that this should increasingly translate into positive performance for the Blue Star share price. Factors supporting this view include:

  • Zero debt on the balance sheet, and an improved basis for raising future capital to take advantage of opportunities that may arise.
  • Historic levels of administrative cost were sharply reduced when Tony Fabrizi became CEO, and remain low at around £350k.
  • A broadened pool of management expertise, bringing experience from private equity, corporate finance and media.
  • Positive track record for the current portfolio of assets.

"We argue that sustained performance could justify Blue Star shares trading at a premium to Net Asset Value, as opposed to the current 48% discount."

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