Top 5 Gaming Stocks on the London Stock Exchange

Summary

• The UK gaming industry is one of the largest in the world, with gaming contributing more than 50% of the entertainment market.
• People have now become habitual of playing games; hence the industry is expected to grow.

The UK gaming industry is continuously growing, and it is one of the largest in the world. In the UK, gaming accounts for more than 50% of the entertainment market. Last year, UK’s gaming market was at a record-high value of around £5 billion.

In 2020, the global gaming market was valued at £114 billion, going forward, in the next 5 years, the numbers are likely to double, as per the data released by SG analytics. People have now become habitual of playing games and widely consider it as a self-entertainment option.

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Let us look at the top players in the gaming industry.

Keywords Studios PLC (LON:KWS)

The company is into the business technical and creative services for the global video games industry. Keyword Studios’ services include art services, game development, player services, audio support etc.

In April 2021, the company acquired Climax Studios for a value of £43 million. This acquisition will bring synergies for the Group's strategy of becoming a creative services platform and 'go to' technical for the global video games industry. For the year ending 31 December 2020, the Group Revenue was up 14.4% to €373.5 million.

The company’s market capitalisation stood at £1878.35 million. On 30 June, shares of the company closed at GBX 2490.00 and have soared 37% in last one year. 

Playtech PLC (LON: PTEC)

An FTSE250 constituent is world’s largest supplier of online gambling and sports betting software. The company develops software for online casinos, online sports betting, online bingo games as well as online poker rooms.

The company’s revenue for the year ending 31 December 2020 stood at €1078.5 million compared to €1440.5 million a year ago. Adjusted EBITDA (including Finalto) stood at €310.0 million compared to €383.1 million a year ago.

The company’s market capitalisation stood at £1302.63 million. On 30 June, shares of the company closed at GBX 425.20 and have soared over 51% in last one year.  

Frontier Developments PLC (LON:FDEV)

Frontier Developments Plc develops games across multiple platforms by using their proprietary cross-platform technology, Cobra. The company has developed famous games such as Planet Zoo, Elite: Dangerous, Planet Coaster and Jurassic World Evolution. Prominent clients for the company are Amazon, Microsoft, Atari and Konami.

As per the company’s latest trading update for the 12 months to 31 May 2021, Frontier has delivered revenue of around £91 million in FY21 and is well positioned to grow significantly in FY22. 

The company’s market capitalisation stood at £938.35 million. On 30 June, shares of the company closed at GBX 2310.00 and have increased by 24% in last one year.  

888 Holdings PLC (LON:888)

An FTSE250 constituent is one of the world’s leading online gaming companies.

The company reported a 56% growth in its revenue to US$ 272.5 million for Q1 2021 on a Y-o-Y basis, backed by product leadership strategy and continued expansion in the regulated markets. As per the quarterly trading update released by the company ending 31 March 2021, 888 has reported 27% growth in average daily first-time depositors.

The company’s market capitalisation stood at £1428.55 million. On 30 June, shares of the company closed at GBX 383.80 and have soared 119% in last one year.  

Sumo Group PLC (LON: SUMO)

The gaming company operates in four businesses Atomhawk, Sumo Digital, Pipeworks and Secret Mode, with spread across 13 studios in the UK.

The company has reported revenue of £68.9 million, up by 40.7% for the year ending 31 December 2020 compared to £49.0 million a year ago. The group profit increased by 31.5% to £31.5 million for the year ending 31 December 2020.

The company’s market capitalisation stood at £626.69 million. On 30 June, shares of the company closed at GBX 365.50 and have surged over 92% in last one year.