We take a look at a small cap in the fitness space today because the company has a unique model that promises to make a splash given its strong brand. B2Digital Inc (OTCMKTS:BTDG), a company that has been mostly associated with Mixed Martial Arts PPV events, has recently detailed more about its vision, and the model in play suggests surprising growth potential.
Branding is everything. Anyone running a business that has to interface directly with end-market consumers knows this. It’s the big factor.
Branding is the mental footprint a product or service carves out in the intersubjective consciousness. A strong brand resonates with its target market – it becomes “sticky” and easily referenced in everyday experiences.
Strong brand identity is the holy grail for any such company.
BTDG already has a strong brand due to its years of running mixed martial arts events for both in-person and live PPV broadcasts.
Now, it has begun to monetize that brand with a roll-up strategy in the fitness facility space by buying up pandemically-devalued gyms on the cheap and combining them with MMA training services to create a unique hardcore gym concept that is already demonstrating strong growth.
The Recipe
As discussed, B2Digital Inc (OTCMKTS:BTDG) is starting to monetize its brand through an innovative strategy that capitalizes on distressed pricing in the fitness facility space for both whole operations and equipment.
The strategy hinges on the notion that the MMA community makes for better gym members than the average consumer of fitness services because they are culturally more aligned with commitment to fitness.
The other key piece is the fact that B2 has already developed one of the strongest brands in the MMA space – widely recognized as “the development league for mixed martial arts”.
In the company’s press release last month, BTDG discussed its overarching revenue model and some basic points about what it anticipates in terms of performance over coming quarters. As we see it, the company is now anticipating a monster breakout in growth as this equation begins to gain traction.
The result could be 300-500% expansion over the coming year, particularly if we don’t see widespread new lockdowns over coming months and a safe and effective vaccine rolls out without major unforeseen delays in 2021.
“Based on the strategy we have in place – and the assumption that we don’t see major new pandemic-related shutdowns that impact the business – we are targeting $4-5 million on the topline over the rolling forward next twelve months,” commented Greg P. Bell, CEO of B2Digital. “This is based on the growth we are seeing now and the continued successful implementation of the company’s roll-up strategy in our Fitness Facility segment, which is the real breadwinner in our broad vision. We are already on pace to more than double the topline on a sequential quarterly basis into year-end.”
The Biggening
For B2Digital Inc (OTCMKTS:BTDG), the gyms are the motor. But the brand is the gas.
And the tank is about to get filled to the brim after the company just announced it is about to embark on its biggest stretch of live PPV MMA events in company history, with 17 big events across a diverse pool of metropolitan markets in 8 top fighting U.S. states.
“We will continue to emphasize our emerging model, which is heavy on pay-per-view marketing and delivery, relies very little on in-person attendance, and creates layers of value that can be monetized over time in our One More Gym roll-up strategy,” commented Bell.
Not only are we about to see the best B2 season ever, but it’s likely to get the most eyeballs per event ever as well following its recent move to get on the major OTT platforms including Apple TV and Amazon Fire TV, in addition to streaming online PPV coverage.
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