Little known NTN Communcations (NTN on Amex) today announced their Q3 results, which included profits and a significant refocusing on its consumer-focused Buzztime subsidiary. NTN is leader in out of home entertainment, known primarily for its games delivered to bars through those small wireless devices.
I am a small shareholder in NTN, having followed it for years, mostly with increasing frustration as it struggled with too many initiatives, executive turnover and declining stock price. For a company with so many obvious options in the new digital universe, it wasn't executing on any of them. But it feels like it's finally turning the corner, with a profitable quarter, a potential buyer for its BtoB Hospitality business, growing momentum behind its cable ITV and other Buzztime expansions, and a renewed focus on cost control. Given that it's now profitable, growing, and well positioned in a couple of hot categories, I think that it will command a valuation higher than its current 1.7x revenues if it can nail a couple of additional quarters.