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- According to Mordor Intelligence, the global online gaming market was valued at around US$173.3 billion in 2021.
- ICI, ESH and MKL are some of the ASX online gaming stocks on investors’ radar.
- Investors must not forget to do their own due diligence before investing in a relatively small industry like the online gaming space.
Online gaming has been one of the most popular activities that have picked up pace during the COVID-19 pandemic. With lockdowns and physical restrictions in place, gamers (especially younger generation) had a lot of time at their disposal to spend on their favourite pastime, i.e., online gaming.
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According to Mordor Intelligence, the global online gaming market was valued at around US$173.3 billion last year and is estimated to grow at a pace of 9.64% CAGR to US$314.4 billion by 2027. With many lucrative growth opportunities for online gaming players in the Australian market, let us have a look at three ASX shares that are on investors’ radar for the next few years.
Read More: Three ASX penny shares turning heads today
iCandy Interactive is an ASX-listed mobile game development company. After the acquisition of Lemon Sky Studios, it has become the largest game development company in Australia.
It has also been ranked 25th in the list of 100 fastest growing companies of Australia in 2020 by the Australia Financial Review. The company’s gaming portfolio includes more than 300 titles in over 10 languages. The company’s Claw Stars has recently won Google Play Best of 2021 Award.
The company has a market capitalisation of AU$131.89 million. iCandy has significantly cut its losses to AU$0.3 million in FY21, from a net loss of AU$2.22 million in FY20 and AU$3.45 million in FY19.The company’s share price last closed at AU$0.135 on 24 January 2022, delivering a year-to-date (YTD) return of a negative 3.57%.
Esports Mogul is an Australian esports media and software company that captivates audience by organising tournaments for the world’s most played games such as Call of Duty, PUBG, etc. The company has a market capitalisation of AU$19.33 million and it reduced its net loss to AU$5.34 million in FY21, compared to a loss of AU$5.92 million a year ago.
The ESH share price hasn’t performed well so far in 2022. The stock has fallen over 40% to the last closing price of AU$0.006, as of 24 January 2022. However, the recent volume spikes in this month, including a volume of over 36 million shares today (the highest one-day volume this year) shows increased investors’ participation in this stock.
3 ASX online gaming shares on investors’ radar
The last stock on our list, Mighty Kingdom is one of the biggest game developers in Australia and has worked with some of the prestigious clients such as Disney, Snapchat, LEGO, etc. It designs gaming experience for a both smartphones and PC. The company has a market capitalisation of AU$25.2 million.
The MKL share price has delivered a negative return of 9.38% this year, last closing at AU$0.14 on 24 January 2022. The company’s increasing revenue for the past three years is one of the reasons that has attracted investors towards this small cap online gaming player.
Online gaming has rapidly picked up pace over the last two years, owing to the COVID-19 pandemic-induced restrictions. Although, some analysts forecast a good outlook for the entire industry, one must not forget to do their own due diligence before investing in a relatively small industry like the online gaming space.
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