AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Source: Africa Studio, Shutterstock
Summary
- Most UK gaming companies have given strong returns in FY2020.
- The UK gaming market is fifth largest in the world and is worth £3.86 billion.
A majority of companies in the broader gaming sector have come out as winners in the last one year obviously due to lockdown and restrictions all over the world. When most families were locked at home, gaming grew as the favourite pastime. In the last one-decade, online gaming reported an exponential growth because of the innovative ways to play the games. The year 2020 was an exceptional year. Developers adopted latest techniques to connect enthusiasts worldwide and enhanced the mobile gaming experience. Now, gaming is a favourite in all age groups and have a global audience of about 500 gamers worldwide. As per industry estimates, the global gaming revenue in 2020 is expected to surge 20% to almost US$179.7 billion.
A report published by Safe Betting Sites has highlighted that the gaming ecosystem is expected to generate $109.6 billion in revenues this financial year, a 44 per cent jump in two years.
The UK, which is fifth largest market for gaming in the world, the industry is worth £3.86 billion. From online gaming to gambling, the UK market has marked record growth and can now easily compete with other major markets like the US, China, Japan. Factors such as technology advancement, additions in cloud technology, 5G rollout and others are going to further push the market growth.
Copyright © 2021 Kalkine Media Pty Ltd.
In this article, we shall put our lens through some gaming stocks listed on the London stock market.
- Best Of The Best PLC (BOTB)
The UK-based company, floated in 1999, mainly deals with online competitions and contest, which are primarily held on a weekly basis. The Midweek Car, Dream Car and Lifestyle are some of the popular contests, which involves car brands such as BMW, Ford, Land Rover, Porsche, Audi, Mercedes, Jaguar, Aston Martin, Tesla, Nissan, Toyota, and many others. The winner chosen at the end of the competition and prizes include bikes by famous brands like Harley-Davidson, Kawasaki, Ducati.
The company’s revenue for H1 revenue FY2020 stood at £22.09 million as compared to GBX 7.6 million a year ago. The pre-tax profit was £6.8 million as compared to GBX 1.38 million a year ago. The company’s board has said that the full-year pre-tax profits will exceed management expectations.
The AIM-listed company’s one-year return was 817.43 per cent and the 52-week range was 321.00/3,600.00 on London Stock Exchange. The company’s market capitalisation stood at GBX 322.75 million. The H1 earnings per share stood at 59.84 pence as compared to 12.4 pence in 2020. Shares of BOTB on 16 March last quoted at GBX 3,400, down 1.16 per cent from the previous day’s close.
- Playtech Plc (LON:PTEC)
Playtech Plc primarily develops software for gambling apps for online casino, bingo, mobile, live gaming, poker, pay to play games and others. The company designs software and provides its services for online gaming operators, retail, land-based, and mobile operators too. Its main subsidiaries are Playtech Software Limited and Techplay Marketing Limited.
The company’s revenue for FY2020 was reported at EUR 1,078.46 million as compared to EUR 1,508.45 million a year ago. The adjusted EBITDA from continuing operations stood at EUR 253.6 million as compared to EUR 375.3 million a year ago.
The company’s market capitalisation stood at £1,313.05 million, with a 1-year return of 163.99%. The shares of the company on 16 March last quoted at GBX 414.60 on the London Stock Exchange, down by 3.27%, from the previous day’s close.
Copyright © 2021 Kalkine Media Pty Ltd.
- Frontier Developments PLC (LON:FDEV)
Developers of famous games like Planet Zoo, Jurassic World Evolution, Planet Coaster, Elite Dangerous, Frontier Developments is involved in developing non-game applications and video games using its famous COBRA cross-platform technology. It offers its Elite Dangerous game for platforms such as PC, Mac and Xbox One.
In the first half of 2020, Frontier Developments PLC performed well and the H1 revenue stood at £36.91 million, a 15 per cent rise. In January, the company declared that its H1 operating profit was £6.9 million as compared to £4.5 million a year ago. The gross profit margin grew to 71 per cent in H1 FY20.
The AIM-listed company’s one-year return stood at 157.66 per cent and the 52-week range was 952.00/ 3,470.00 on London Stock Exchange. The company’s market capitalisation stood at £1,004 million. The H1 basic earnings per share 15 pence as compared to 9.4 pence in 2020.
Shares of FDEV last quoted GBX 2,690.00 on 16 March, up 5.28 per cent from the previous day’s close.
- SUMO GROUP PLC (LON:SUMO)
Founded in 2003 by four developers Carl Cavers, James North-Hearn, Paul Porter, and Darren Mills, Sumo Digital has successfully developed games such as England International Football, OutRun 2, Snake Pass, and Spyder.
The company reported a revenue of £26.30 million in H1 FY2020 as compared to £20.77 million a year ago. In September 2020, the company reported H1 pre-tax profits at £2.8 million. The adjusted gross profit for H1 2020 was £11.5 million. The company expects solid performance in 2021.
The company’s market capitalisation stood at £519.10 million. Shares of the AIM-listed company have soared 117.24 per cent in last one year. Shares of SUMO on 16 March last quoted at GBX 315.00, up 3.62 per cent from the previous day’s close.
- Gaming Realms PLC (LON: GMR)
Founded in 2001, the company has a wonderful track record as a developer of real money and social games. Their famous brands are Slingo and IP, which is one of the most popular formats used in gaming. While it provides real money gambling and related marketing services to its UK clients, both gaming and non-gaming, it offers freemium gaming and related services to its clients in US and Europe.
The company’s revenue grew to £5.2 million in H1'20 from £3.1 million in H1'19. The adjusted EBITDA margin was 23 per cent, where it grew to £1.24 million from £0.1 million.
The AIM-listed company’s one year return was 561.48 per cent and the 52-week range was 4.40/ 38.60 on London Stock Exchange. The company’s market capitalisation stood at GBX 97.98 million. Shares of GMR on 16 March last quoted at GBX 34.00.
- Webis Holdings PLC (LON: WEB)
The company is a holding company with its foothold in gaming and tech sector. Its main subsidiary, WatchandWager.com, a gambling website, provides several options on horse and greyhound racing worldwide, and also provides contracts along with racetrack partners worldwide.
The AIM-listed company reported a total revenue of US$ 45.3 million for H1 ended 30 November 2020. In February, the company reported that it returned to profit in H1. The profit before tax was US$721,000 as compared to a loss of US$207,000 a year before. The company’s profit before tax rose 9.6% to £13.0 million. It was £11.9 million in 2019.
The one-year return stood at 172.28 per cent and the 52-week range was 0.70/ 3.70 on London Stock Exchange. The company’s market capitalisation stood at £9.66 million. The full-year dividend was raised to 2.55p from 0.69p. Shares of WEB on 16 March last quoted at GBX 2.75, up 12.24 per cent from the previous day’s close.
