- People have indulged in computer games and indoor exercises during the lockdown period
- Accessibility, affordability, and choice are some of the factors resulting in online gaming to gain popularity
- Stocks like Frontier Developments PLC, Codemasters Group Holdings PLC, and 888 Holdings PLC have performed well during the Covid-19 pandemic
Most of the organizations around the world are affected negatively by the covid-19 commotion. However, the pandemic has given a new opportunity to the web empowered organizations in the United Kingdom and similarly around the globe.
Online retailing of the essential items saw the biggest growth during the period of April to July 2020, followed by services like online banking, gaming, and betting. The video gaming segment performed well during such an unprecedented occasion, because of the forced lockdown and restrictions to move out of home.
Therefore, people are increasingly indulging in computer games and indoor exercises across the nation. A significant number of UK based companies which are into the gaming business are performing well during the pandemic times, with an increase in their revenue generation. The UK gaming area is recognized as the largest across the European landmass.
Reasons for the popularity of the Gaming Business
- Accessibility – Accessibility to the client is the first comforting rule for any online gaming site. This implies that the game is not difficult to understand and gives the user a pleasant experience from the moment he goes to the site.
- Extensive Choice - Gaming is very popular because of the large number of choice and options available to the user. Modern gamers are literally getting more choice than ever before.
- Affordability – A number of top gaming sites offer the opportunity to play online games completely free of cost, which expands their user-base, while many sites offer paid games. Some of the top gaming companies also provide the opportunity for gamers to win small to large sums of money through betting.
- Playability – Another main reason for the growing popularity of gaming is that it can be enjoyed and easily understood by the player even if he/she is a beginner.
- Variety of Opponents - The gaining popularity of online games comes from the fact that the user can play with a variety of opponents, be it friends, family, or unknown persons.
With a large portion of the total population under still staying indoors, hardened gamers have more opportunity to play while amateurs might be enticed to evaluate another side interest. In this article today, we will be discussing three gaming and betting-related companies that have performed well over the past four months since the time the lockdown had come into effect.
Incorporated in the UK, Frontier is a software technology company, engaged in developing video games and non-game applications for the entertainment sector. With a workforce of over 500 employees, Frontier Developments group has been currently looking to recruit both graduates and experienced candidates to work on their projects of its gaming platforms. It has been continuously delivering a diverse catalogue of games over three decades.
On 8 June 2020, the company released its trading update for the year ending 31 May 2020, confirming a good finish to the financial year. The company estimated to be generating a revenue of approximately £76 million for FY20. Operating profit is anticipated to be at least £16 million. The company unveiled a new game named Elite Dangerous: Odyssey, on 3 June 2020, Two more games are slated for release during FY21. The company expects to release five or six third party game per year from FY23 onwards.
Frontier Developments PLC (LON: FDEV) stocks were trading at GBX 1,840.00, down by 1.60 per cent, after the market closed on 24 July 2020. The 52-week low/high price was GBX 866.00/2,065.00. It was having a market capitalization (Mcap) of £727.65 million.
Incorporated in Southam, Codemasters is engaged in the developing and publishing of video games. Having a successful record of 30-years in producing games, it specializes in high-resolution racing games. It is among the top game developers in Britain.
On 22 June 2020, the company released its final result report for the period ending 31 March 2020. It launched two new games and has delivered a growth in revenues by 6.8 per cent and a rise in gross profit by 4.5 per cent. The company’s digital sales (contributing 67.7 per cent to total revenue) have also risen for the year FY20. The company continued to strengthen its leadership in the racing games genre. It is also planning to launch the next-generation platform for Microsoft (Xbox Series X) and Sony (PlayStation 5) shortly.
Codemasters Group Holdings Plc (LON: CDM) stocks were trading at GBX 351.50, down by 0.57 per cent, after the market closed on 24 July 2020. The 52-week low/high price was GBX 193.50/388.00. It was having a market capitalization (Mcap) of £535.01 million.
Incorporated in 1997, 888 Holdings is a popular online gaming entertainment and solutions provider. It is one of the constituents of the FTSE 250 index of London Stock Exchange. The company provides innovative and world-class online gaming experience to its customers.
On 26 June 2020, the company released its trading update for the six months ending on 23 June 2020. It has been continuously informing its customers regarding safe gambling practices, prioritizing on preventing gambling-related harm by proactively communicating with customers. The company traded well in Q1 2020. The average daily revenue in the year to date has surged 34 per cent as compared to the last year 2019, reflecting increased levels of customer acquisition.
888 Holdings Plc (LON: 888) stocks were trading at GBX 185.00, down by 0.11 per cent, after the market closed on 24 July 2020. The 52-week low/high price was GBX 70.70/201.50. It was having a market capitalization (Mcap) of £682.90 million.
To conclude, the coronavirus pandemic has boosted to the operations of the internet-enabled businesses, especially in the gaming and betting space. Three companies in this sector – namely Frontier Developments PLC, Codemasters Group Holdings Plc, and 888 Holdings Plc have increased their digital delivery operations, to generate higher revenues.
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