Which Countries and Companies Are Driving Gaming Revenue?
According to Newzoo, China (FXI) is the largest gaming market globally with annual revenue of $32.5 billion and an Internet population of 814 million.
Activision (ATVI) Blizzard’s Overwatch was one of the most popular games on Twitch. It logged in 1.3 million eSports hours during October 2017.
The global eSports market is expected to grow in the next two years. By the end of 2020, the eSports space could generate $1.5 billion–$2.4 billion.
In 2017, Newzoo expects mobile gaming revenue to rise 23.3% YoY (year-over-year) to $50.4 billion and account for 43% of the total revenue.
Research firm Newzoo has estimated that worldwide gaming revenue will reach $116 billion in 2017 with more than 2.2 billion players.
Analysts expect Activision to post a net margin of 14.4% in fiscal 2017, 16.9% in fiscal 2018, and 19.5% in fiscal 2019.
Of the 27 analysts covering Activision Blizzard (ATVI), 20 recommend a “buy,” while none recommends a “sell,” and seven recommends a “hold.”
Activision Blizzard (ATVI) is one of the largest gaming companies, with a market cap of $46.9 billion.
Of the 27 analysts covering Activision (ATVI), 20 have recommended “buy,” none have recommended “sell,” and seven have recommended “hold.”
Activision Blizzard’s (ATVI) revenue rose over 40% YoY (year-over-year) to $6.6 billion in fiscal 2016. In the first nine months of 2017, Activision’s revenue rose 8.7% to $5 billion from $4.6 billion in the first nine months of 2016.
Activision Blizzard’s (ATVI) digital sales in 3Q17 rose less than 1% YoY (year-over-year) in 3Q17 to $1.35 billion. In the first nine months of 2017, digital sales rose 33% YoY to $5.5 billion.
Activision Blizzard (ATVI) is one the major players in the eSports segment, which is in a nascent stage. Riot Games, which is backed by China’s (FXI) Tencent (TCEHY), also has an eSports tournament for League of Legends.
Activision Blizzard (ATVI) announced that the Overwatch League will debut at Blizzard Arena Los Angeles on January 10, 2018. Twelve teams are slated to compete in regular season games.
Activision Blizzard’s (ATVI) players spent over 50 minutes per day on average in 3Q17. According to Activision, this is similar to other engaging online connected platforms globally.
At the end of 3Q17, Activision Blizzard (ATVI) had 384 million monthly active users (or MAU’s). Activision has three primary business reporting segments—Activision, Blizzard, and King Digital.
Since the start of calendar 2017, Activision Blizzard’s (ATVI) stock price has risen over 75% to close at $63.93 on November 20.
Since the start of 2017, Activision Blizzard’s (ATVI) stock has risen 70.2% after falling ~6% in 2016. The stock has generated returns of -0.3% in the past five trading days.
Since the start of 2017, Electronic Arts’ (EA) stock has risen 44.3% after rising ~15% in 2016. The stock has generated returns of -3.3% in the past five trading days.
In fiscal 1Q18, Electronic Arts’ (EA) digital revenue rose 28% YoY (year-over-year) to $681 million from $568 million in 1Q17.
A broad portfolio of games for Activision Activision Blizzard (ATVI) has a broad portfolio of games across genres. A few years ago, the company banked on games like World of Warcraft, Skylanders,…