Recent Earning Reports for Mobile Gaming Stocks Showing Healthy, Steady Growth
PALM BEACH, Fla., Aug. 10, 2020 /PRNewswire/ -- The global health pandemic has had an incredibly negative impact on most businesses and markets across the globe, but there are actually some markets that have thriving because of the pandemic. The global gaming market is one of those exceptions. Revenues are booming in this industry this year… and are projected to continue in the near future. In fact, most of companies in market are showing upticks in recent quarterly earnings reports across the market… and the mobile games market looks like it will enjoy more growth than both PC and console gaming. According to a report from Newzoo: "The world is currently undergoing a harrowing and unprecedented event: the COVID-19 pandemic. During these trying times, gaming has become a means of escapism and time filling for many. As a result, one of this year's growth drivers is an increased interest in gaming due to COVID-19-related lockdown measures. However, the launch of the next-generation consoles toward the end of the year is also a key contributing factor." Newzoo projected that the 2020's global games market will generate revenues of $159.3 billion, a healthy year-on-year growth of +9.3%... All game segments saw an increase in engagement and revenues as a result of the COVID-19 measures, but mobile gaming saw the biggest increase. In total, mobile games will generate revenues of $77.2 billion in 2020, growing +13.3% year on year. Active tech and gaming stocks in news today include: Tapinator, Inc. (OTCPK: TAPM), Glu Mobile Inc. (NASDAQ: GLUU), Zynga Inc. (NASDAQ: ZNGA), SciPlay Corporation (NASDAQ: SCPL), Esports Entertainment Group, Inc. (NASDAQ: GMBL).
Another report by TechZone360 echoed that projection, saying: "Last year, the global mobile gaming market grew to $68.5 billion. This growth was influenced by several underlying factors, making experts believe that the numbers will continue soaring this year. According to market experts, the global mobile gaming market will hit $76.7 billion, representing a 12% market growth. This year, industry experts predict that consumers will collectively spend over 670 billion hours playing games on their mobile phones. That's a significant increase, considering that people spent about 558 billion hours in 2019. This growth has been brought by the substantial rise of mobile use for online gaming, as game publishers continue releasing mobile-compatible versions of popular titles."
Tapinator, Inc. (OTCPK: TAPM) BREAKING NEWS – Tapinator Reports Q2 2020 Financial Results - Highest Quarterly Bookings, Adjusted EBITDA and Earnings Performances in Tapinator History - Tapinator, a developer and publisher of category leading apps for mobile platforms, today announced unaudited financial results for the three and six months ended June 30, 2020 and 2019, and the filing of its quarterly report for the period ended June 30, 2020. The quarterly report and financial statements may be found at http://www.otcmarkets.com/stock/TAPM/disclosure. The results provided below replace, in its entirety, any guidance or projections previously issued by the Company.
For the three months ended June 30, 2020, Tapinator achieved revenue of approximately $1,174,000, bookings* of approximately $1,258,000, net income of approximately $64,000, and adjusted EBITDA* of approximately $313,000. The Company's revenue, bookings* and adjusted EBITDA* represent year-over-year changes of (13%), 60% and 7%, respectively.
For the six months ended June 30, 2020, Tapinator achieved revenue of approximately $2,088,000, bookings* of approximately $2,235,000, net loss of approximately $204,000, and adjusted EBITDA* of approximately $403,000. The Company's revenue, bookings* and adjusted EBITDA* represent year-over-year changes of (3%), 28% and 78%, respectively.
Andrew Merkatz, President & CFO of Tapinator, commented on the Company's results, "We are very pleased with the following accomplishments during the second quarter of 2020:
In other gaming industry news and developments of note:
Zynga Inc. (NASDAQ: ZNGA) recently released financial results for its second quarter ended June 30, 2020 by posting management's Q2 2020 Quarterly Earnings Letter to its Investor Relations website. "We delivered tremendous results in Q2, achieving our highest quarterly revenue and bookings and generating Zynga's best quarterly operating cash flow in more than eight years. We also executed our transformational acquisition of Peak and are now entering Q3 with eight forever franchises, adding significant scale to our live services foundation," said Frank Gibeau, Chief Executive Officer of Zynga. "Additionally, we have entered into an agreement to acquire Istanbul-based Rollic, developer and publisher of a portfolio of popular hyper-casual games in one of the largest and fastest-growing mobile gaming categories.
"In the quarter, our live services drove our best revenue and bookings results ever with revenue of $452 million, up 47% year-over-year, and bookings of $518 million, up 38% year-over-year. We achieved many new performance records in our forever franchises, Social Slots and Casual Cards portfolios as more people turned to our deeply social game experiences while sheltering-in-place and as players enjoyed our robust lineup of bold beats. This greater than expected topline performance, coupled with lower than anticipated marketing investments, drove strong operating leverage and our best operating cash flow in more than eight years of $145 million, up 47% year-over-year."
Glu Mobile Inc. (NASDAQ: GLUU), a leading global developer and publisher of mobile games, recently announced financial results for its second quarter ended June 30, 2020. The company also provided an outlook for its financial performance in the third quarter and raised its financial guidance for the full year 2020. "The second quarter financial results were the best in Glu's history," said Nick Earl, Chief Executive Officer. "We saw record quarterly bookings in all three of our Growth Games and the continued resurgence of Kim Kardashian: Hollywood and Diner DASH Adventures. Additionally, our latest launch, Disney Sorcerer's Arena, showed strength in its first full quarter. This progress reinforces our growth objective of stacking bookings that scale and increase profitability over time. Looking ahead, our focus is to continue to drive strong Growth Game performance through our live ops, develop our robust pipeline of new potential Growth Games, and strategically layer on accretive acquisitions."
Eric R. Ludwig, Chief Operating Officer and Chief Financial Officer, stated, "In the second quarter, the positive player engagement and monetization trends we experienced in the prior quarter accelerated and drove significantly better than expected top and bottom-line results. We were able to achieve these results while investing in user acquisition to build a larger player base. Our strong free cash flow generation in 2020, plus our recent capital raise, provides us with the firepower and flexibility to pursue an expanded pool of acquisition opportunities. We expect to end the year with at least $325 million of cash and no debt. We will continue to balance incremental bottom line flow through with strategic investments that we expect will stack bookings and expand margins."
SciPlay Corporation (NASDAQ: SCPL) recently reported results for the second quarter ended June 30, 2020. Some of the Key Performance Highlights vs. Second Quarter 2019 were: Payer conversion rates reached a quarterly record of 6.8%, validating our continued focus on live operations to drive increased player interaction with our games; Average monthly revenue per payer increased 24% to $101.13; ARPDAU increased 40% to $0.67; Mobile penetration increased 400 basis points to 87%; and International testing progressing with improved KPIs across geographies and games.
Josh Wilson, Chief Executive Officer of SciPlay, said, "We are extremely pleased with the results we delivered in the second quarter. The strong performance was evidenced throughout our portfolio driven by successful game updates coupled with the "stay at home" dynamic. In addition to our outstanding results, we also acquired casual game developer, Come2Play during the quarter, which adds to our proven library of IP and provides another engine for growth. The acquisition immediately expands our market opportunity through the addition of a new genre of evergreen casual games and brings an incredibly talented team to our portfolio."
Esports Entertainment Group, Inc. (NASDAQ: GMBL), a licensed online gambling company with a focus on esports wagering and 18+ gaming, recently announced the closing of its acquisition of LHE Enterprises Ltd, the holding company of online sportsbook and casino operator Argyll Entertainment AG and its operating subsidiaries ("Argyll"). Argyll Entertainment, winners of the Innovative Start-up of the Year at the 2018 EGR Marketing & Innovation Awards, launched its flagship brand, sportnation.bet in the summer of 2017. Argyll has established itself as a fast growing and innovative gaming company within the UK and Irish market leveraging its expertise in marketing, technology, risk management, and regulation to offer its customers an entertaining, safe and secure online gaming experience, an award winning rewards program and access to exclusive sports and gaming content.
"Acquisitions are an important component of our growth strategy and completing our first acquisition as a NASDAQ company is a tremendous milestone for us," commented Grant Johnson, CEO of Esports Entertainment Group. "Argyll generated $12 million in revenue in 2019, and with its base of more than 100,000 registered users, combined with the deep domain knowledge of its accomplished team, we have a strong foundation to build upon as we seek to capitalize on the wealth of opportunities ahead in this rapidly growing market."
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