Palm Beach, FL – August 10, 2020 – 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, said: “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:
- We delivered our best bookings, net income, earnings per share, and adjusted EBITDA in Tapinator history, driven by our LiveOps which performed well throughout the quarter.
- We reported quarterly bookings* of approximately $1.3mm, representing year-over-year growth of 60%.
- We reported, within our core Category Leading Apps business, quarterly bookings* of approximately $1.0mm, representing year-over-year growth of 74%.
- We continued the significant cost control measures that we implemented in the first quarter of this year. These measures contributed to our achievement of quarterly net income of approximately $64,000 and adjusted EBITDA* of approximately $313,000, which compare, respectively, to a net loss of approximately ($265,000) and adjusted EBITDA* of approximately $293,000 recorded in Q2 2019.
- We achieved adjusted EBITDA margin of 27% during the quarter, performance that we believe is indicative of the strong operating leverage inherent in our business.
The mobile game industry is expected to generate $100 billion in revenue in 2020, up from $86 billion in 2019, according to App Annie, the mobile data and analytics researcher. Based on the report, games are now 72% of all spending in the app stores. Mobile games saw 25% more spending than all other games combined in 2019. Mobile game spending was 2.4 times the spending for PC and Mac games, and 2.9 times spending for home game consoles in 2019. The growth rate of the social casino market, the subset of the market that Tapinator focuses on, is estimated at 5% over the next four years and is projected to reach $6.8 billion by 2023, according to market research firm Eilers & Krejcik. Tapinator has become a seasoned operator in this massive and lucrative market, and we believe we are well positioned to continue to deliver strong growth and product leadership in the coming years.” Read the full financial report with results for TAPM at: https://www.financialnewsmedia.com/news-tapm
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.”
DISCLAIMER: FN Media Group LLC (FNM), which owns and operates Financialnewsmedia.com and MarketNewsUpdates.com, is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with any company mentioned herein. FNM and its affiliated companies are a news dissemination solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM’s market updates, news alerts and corporate profiles are NOT a solicitation or recommendation to buy, sell or hold securities. The material in this release is intended to be strictly informational and is NEVER to be construed or interpreted as research material. All readers are strongly urged to perform research and due diligence on their own and consult a licensed financial professional before considering any level of investing in stocks. All material included herein is republished content and details which were previously disseminated by the companies mentioned in this release. FNM is not liable for any investment decisions by its readers or subscribers. Investors are cautioned that they may lose all or a portion of their investment when investing in stocks. For current services performed FNM has been compensated forty six hundred dollars for multiple day news coverage of the current press releases issued by Tapinator, Inc. by the company. FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. “Forward-looking statements” describe future expectations, plans, results, or strategies and are generally preceded by words such as “may”, “future”, “plan” or “planned”, “will” or “should”, “expected,” “anticipates”, “draft”, “eventually” or “projected”. You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company’s annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.
Media Contact email: firstname.lastname@example.org – +1(561)325-8757