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The pandemic forced survival mode upon everyone – including businesses.
With the world’s traditional dynamics flipped upside down, businesses like Amazon’s AMZN Whole Foods Market and Summit Hotel Properties Inc.’s INN Hotel Inn were forced to — at least temporarily — reinvent themselves. Customers may have witnessed Whole Foods brightly lit aisles transform into “dark store” fulfillment centers, and frequent hotel patrons in the United States saw some Hotel Inn’s reconfigured into vaccination centers.
These are just some ways that businesses adapted to survive. For Troika Media Group Inc. TRKA, this adaptation took form in a series of strategic actions that positioned it to weather the delays in client campaigns, especially in the form of live-events, while also expanding its product offerings to be prepared to capitalize on the reopening of the world’s economies.
Troika Media Group: Expansion Into Fast Growing eSports, Online Gaming and NFTs
Troika kickstarted 2021 with an initial public offering (IPO) that placed it on the Nasdaq Stock Exchange and said it would use the net proceeds for acquisitions, general corporate purposes and debt payments.
Troika was quick to act on its promise; just nine days after its IPO announcement, the Company partnered with Devlin Design Group to create the new broadcast for the League Championship Series (LCS), the largest professional eSports league in the world. This partnership, which showcased the world’s most-watched eSport game League of Legends, became the first in a cascade of client activity and partnerships that the company announced during 2021.
On May 20, Troika partnered with Stampede Ventures, a Los Angeles-based content creation company, to launch a new non-fungible token (NFT) series. The series consisted of five pieces — four fruit-inspired NFTs and a final piece titled “Sunshine for All” — and was based on a partnership between Dole Sunshine Co. and the Hungry Artist David Datuna. The aim of the collection was to increase awareness of food insecurity and malnutrition worldwide while raising funds toward alleviating hunger.
Four days later, the company acquired crypto/NFT platform Redeem Acquisition Corp. with the intent of integrating its products across media services and developing its own crypto-based, revenue-generating products. Trioka extended its NFT-focused expansion efforts by launching NFT 360™, the company’s first native mobile app on IOS that informs users about cryptocurrency and NFTs.
Troika Media Group: A Return to Pre-Pandemic Health?
In addition to its entry into the NFT space, Troika has long standing relationships with some of the world’s leading brands.
On May 17, Troika launched Troika Labs, a new division that provides data intelligence to clients on a global scale.
Last July, Troika launched an advertising campaign, in partnership with CAA Brand Consulting, for Wilson Sporting Goods Co. to commemorate its designation as the new National Basketball Association (NBA) official game ball. This was followed by the live event associated with the IPO of F45 Training, FXLV, the launch of a campaign for PointsBet Holdings Ltd. PBTHF, a premier global online gaming operator, on a 360-degree campaign, including broadcast, digital, social, out-of-home, in-stadium, and the rebrand of the Pac-12 Network, the content arm of the Pac-12 college football conference.
“As consumer media consumption shifts across the various media platforms, marketers require a partner who understands their business, has deep knowledge of the changing environment and the creative, technology and data services to help them reach their audience in the most efficient and effective way possible,” said Robert Machinist, Troika chairman and CEO.
Troika’s strategic operational decisions during the most difficult periods related to the COVID-19 pandemic coupled with the resurgence of existing and new client activity in the second half of 2021, has resulted in notably improved fiscal year 2022 first quarter ended September 30 financial and operational performance for the company, including the following:
- Approximately 102% organic revenue growth for the first fiscal quarter of 2022
- Strong revenue recovery expected to continue in fiscal 2022
- Demand for client services recovering in the first quarter 2022 with pipeline growing
- Accelerating expansion in fast-growing gaming and eSports market
Commenting on Troika’s fiscal first quarter 2022 results, Robert Machinist said, “Building on the momentum we saw in our business developing at the end of fiscal year 2021, we are off to a great start to fiscal 2022, with strong revenue growth of 102%, lower losses, and operating leverage across the entire business. We believe our very strong performance goes well beyond a post-COVID recovery, as growth was generated across our operating segments, and driven by broad-based contributions across our client sectors.”
Troika believes the significantly improved financial results for the first quarter of fiscal year 2022 is a testament to their strong track record of retaining, expanding and winning new clients. They see clients making significant investments in marketing, particularly in digital media and experiential campaigns, areas that are growing and ones that Troika has a long established record of success with leading global brands. Based on these results, it appears that the company’s recovery from the pandemic induced delays in client activity and new client wins in the fast growing eSports and Gaming markets is well underway.
This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.
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