in Mobile Gaming

G5 Entertainment: Next mobile game developer eyes IPO

According to several sources, PopCap Games, the maker of smartphone games such as “Bejeweled” and “Plants vs Zombies” is looking at a possible IPO as early as the end of this summer. This would be the second high profile IPO within the fast growing mobile gaming sector, following Rovio’s (Angry Birds) statement that they are looking at a listing in the US.

PopCap Games generated revenues of USD 100m in 2010, up from USD 80m in 2009 and USD 50m in 2008, according to CEO David Roberts. 80% of PopCap Games’ revenue comes from digital sales of its games while the remaining 20% are made in retail stores such as Best Buy.

Commenting on growth driver’s in an interview with Reuters, CEO Roberts names the ever increasing trend of people switching to smartphones and emerging markets in Asia as some of the main opportunities. PopCap has currently some 5% of its revenue coming from Asia and aims to increase this share to 30% within 12 months.

Clearly this is another sign that the mobile gaming market is super hot at the moment and the coming wave of IPO’s will certainly increase the stock market’s focus on this sector even more. The bigger the peer group, the more obvious it will be how cheap Swedish developer G5 Entertainment is valued right now. Also, the companies that will be listed will want to expand and G5 Entertainment should represent a golden acquisition opportunity for any of the bigger players.

I am long G5 Entertainment and I hope you are too!

www.nordicinvestor.de

Please find the full Reuters-article at: http://www.reuters.com/article/2011/04/11/us-popcapgames-idUSTRE73A7PR20110411

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