Canadian Gaming Companies
Investors in the video game market can be divided into pure game stocks, game publishers and shares of technology companies with varying market exposure. Some companies develop video game-related software, hardware, streaming services or are involved in sporting events. Other companies with more diversified activities include games such as Microsoft, Sony (SNE), Tencent (TCEHY) and others from this group.
Online multisport mobile games and sports betting are worth more in annual revenues than movies and music. However, the sharp increase in usage during the COVID-19 pandemic has sparked interest in video game stocks, including esports shares. In addition, add-ons, game enhancements, purchases and monthly subscription services have led to multiple revenue streams for sports companies and their investors.
The share price of Canada’s leading gaming company has performed remarkably over the past year, with a return of 30.9 percent. Video game stocks in the VanEck Vectors Video Gaming ‘eSports ETF (ESPO) in the VanEck Vectors (ESPO) have also outperformed the broader market. The ETF has delivered a total return of 10.08% over the past 12 months, while the Russell 1000 “s total return on March 18 was 7.22%.
The share price of Canada’s leading gaming company has risen 4.2 percent from its one-year high of C $1.11 on April 21. Enthusiast Games’ share price was C $6.34, a 40 percent rise YTD, led by unprecedented online traffic. The gambling, hospitality and entertainment company has a stock price of $4.441 and a market capitalization of $2.55 billion.
Since the company is not profitable, it is best to focus on top growth. In fiscal 2020, Enthusiast Gaming generated $7,296 million, compared to $1,229 million in 2019. That surpasses analyst estimates of $6.835 million for the year. Analysts expect the company’s revenue to rise.
The company has developed key competencies in fantasy sports, big data, artificial intelligence, mobile video games, and interactive fan participation platforms for businesses, media companies, nonprofits and charities. According to its latest report, the company has hundreds of gaming sites and more than 1,000 YouTube channels, reaching more than 300 million players every month.
The company entered the sports market through its wholly-owned subsidiary Shadow Gaming Inc. Engine Media Holdings (Canadian eSports shares) to accelerate new live games and interactive gaming experiences for consumers through partnerships with traditional and emerging media companies. Its customers include more than 1,200 TV, print and radio brands.
The revenue comes from sponsorship, media rights, publishing fees, fan merchandise and ticket sales. In addition, sports media company Score Media Gaming offers TheScore Betting, a mobile sports betting platform offering various betting options for the game before and during the match. Enthusiast Gaming develops games and digital sports on its platform for over 300 million monthly users.
Investor Business Daily’s Computer Software and Games Industry Group owns 18 video game shares. Enthusiast Gaming was founded in 2014 and is a Canadian digital media company devoted to building a large gaming media platform. In addition, the sports media company Scoring Media Gaming offers eSports and gaming enthusiasts multiple platforms to pursue their passion.
According to the Investors Business Daily’s stock check, SciPlay ranks first in our group for computer software and the games industry. In addition, the MVIS Global Video Gaming & eSports (AUD) Index and the MVESPOA Pure Play Index track the performance of global companies, which generate at least 50% of their revenue from 25 current components in the video game and sports sector.
IBD’s video game group does not include major players such as France-based Ubisoft or Square Enix of Japan. However, it lists companies trading in the US. In addition, there are a few other Canadian casino stocks that investors should consider, including the Great Canadian Gaming Corporation, Canada’s leading entertainment company with 17 facilities including 10 casinos, hotels, and show theatres, Poydras Gaming, which provides funding for slot machines and related investments for existing casinos and new developments and USA Evergreen Gaming, which owns four casinos in the Washington area.
Online sports betting and gaming stocks remain profitable, leading to the rise of digital users in the space. Moreover, the pandemic is accelerating the amount of time spent on video games, which bodes well for the future and Canadian stocks.
According to Newzoo Research & Development, video game sales totalled $17.49 billion in 2020, up 19.6% from the previous year. SCR shares recorded negative gross revenues for the gambling segment in the third quarter of the fiscal year due to unsettled betting and advertising costs. Great Canadian Gaming announced the reopening of its Toronto casino on July 12.
Gambling, hospitality and entertainment companies manage casinos, tables, games and beverages in Canada. Great Canadian Gaming Corporation operates gaming, entertainment and hospitality facilities. Through its subsidiaries, the company offers its customers casino, bingo and poker games.
Intertain Group Limited (Aumento Capital II Corp. ) is a Canadian online gaming company that entertains a global consumer base. In Russia, UCWeb (Alibaba Digital Media’s Entertainment Group Company) announced their partnership with Mail.ru Group and planned to expand cooperation in mobile games.
After six transactions, the company was granted a license to operate in New Jersey, which led to the Canadian Online Gambling stock price doubling at the TSX Venture Exchange, causing a stir. Canada has approved one-game sports betting, which is good news and allays any concerns about the company’s prospects. More states are also legalizing sports betting, which will expand the target market for scoring media and expand its revenue base.
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