Esports stocks moving the needle

• According to data released this week from Market Growth Reports, esports’ global market size was valued at US$1,586.21 million last year and is expected reach US$4,509.18 million by 2028
• Electronic Arts Inc. (EA) expects its net revenue to be approximately US$7.6 to US$7.8 billion and is anticipating net income to clock in around US$793 to US$815 million, for the year
• Real Luck Group (LUCK) saw an increase in annual revenue of more than 160 per cent, to an annual record of $28.1 million
• Electronic Arts (EA) opened trading at C$168.47per share, GameSquare Holdings Inc. (GAME) opened trading at C$5.67 per share, and Real Luck Group Ltd. (LUCK) opened trading at $0.11 per share

One of the fastest-growing market segments right now is esports.

According to data released this week from Market Growth Reports, its global market size was valued at US$1,586.21 million last year and is expected reach US$4,509.18 million by 2028.

Esports includes many different titles across numerous genres and any gaming device.

This competitive and organized video gaming industry pits players in game tournaments from sports (“Madden”), to shooters like “Call of Duty” and other popular titles like “Fortnite”, “League of Legends”, and “Overwatch”.

One of the companies featured in the report was Electronic Arts Inc. (NASDAQ:EA), whose stock has climbed 2.9 per cent year-to-date.

The Burnaby, B.C.-based gaming company will release its Q4 2022 and year end financials after Tuesday’s market close.

Last year, the company stated that its net cash provided by operating activities was $444 million for the quarter and $1.899 billion for the fiscal year.

EA expects its net revenue to be approximately US$7.6 to US$7.8 billion and is anticipating net income to clock in around US$793 to US$815 million, for the year. However, some anticipate that its net bookings will see an impact from a decline in users following “the lockdown era”.

“F1 ‘23”, its FIA Formula One World Championship gamewill be released on June 16th. 2023.

Earlier this month, GameSquare Holdings Inc. (TSXV:GAME / NASDAQ:GAME) filed its financial results for Q4 2022, highlighting an increase in annual revenue of more than 160 per cent, to an annual record of $28.1 million. GAME stock is up 9.1 per cent since the year began.

There is a lot going on among the companies under GameSquare’s purview, such as the Gaming Community Network, who teamed-up with Dairy MAX, one of the leading regional dairy councils in America, for the second annual “Fuel Up to Play 60 Madden NFL 23 Open Tournament”.

The tournament is part of an online EA Sports “Madden NFL ‘23” competition for students in the Dallas Cowboys’ viewing area, which tests local, middle, and high school students’ gaming skills for an opportunity to play Madden 23 on a live broadcasted final event.

Meanwhile, Real Luck Group Ltd. (TSXV:LUCK / OTCQB: LUKEF) and its subsidiary companies doing business as Luckbox, recently filed its 2022 financial results. Total revenue for the year was $159,992, up from $25,174 in 2021.

Real Luck ended 2022 with player registrations of 137,000 all driven from a negligible base at the end of 2021. 85 per cent of this player base was driven from Q4 2022. The company also generated Global Betting Handle of over $3.2 million during the year, with the vast majority of Global Betting Handle generated in Q4 2022.

Luckbox offers legal, real-money betting, live streams, and statistics on all major esports and sports on desktop and mobile devices.

Year-to-date, Real Luck stock has risen 4.7 per cent.

Electronic Arts Inc. (EA) opened trading at C$168.47per share, GameSquare Holdings Inc. (GAME) opened trading at C$5.67 per share, and Real Luck Group Ltd. (LUCK) opened trading at $0.11 per share

The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.