Aristocrat Praised For Diversifying Their Mobile Gaming Portfolio

Banking group JP Morgan recently released a report that praised Aristocrat Leisure Ltd. for its diversified mobile game portfolio and increased exposure in the mobile gaming market. The move will allow Aristocrat a chance to spread its risk and at the same time maximize its potential to earn a lot of revenue in the market.

JP Morgan analysts Donald Carducci, Shaun Cousins and Shalin Doshi said that the company had succeeded in strengthening its digital offering and has so far brought in 38 percent of financial revenue during 2018.

Mobile gaming is one of the hottest markets out there right now and continues to grow at an exponential rate. Experts note that the revenue for the industry is expanding at a rate of 14 percent and operators such as Aristocrat are looking to capture a large piece of this lucrative market.

Based out of Australia, Aristocrat recently paid $500 million to acquire Plarium Global Ltd., a social gaming firm which made a good addition to Aristocrat’s current stable of social gaming and online casino brands. Trevor Croker, CEO of Aristocrat said that the Plarium deal added to the group’s total consumer market and took it from $3.2 billion in its social casino segment to $25.4 billion, when you add in all the other online gaming segments such as RPGs, casual gaming and strategy .

Aristocrat Gaming

The team from JP Morgan noted that Aristocrat’s diverse mobile portfolio has a lot of potential in lowering the risks for the company and allowing it to earn better.

Mobile Gaming: More Profitable For Operators

JP Morgan’s analysts also took time to comment on the mobile gaming sector, supplementing the recent finding of the California-based startup Liftoff, which does some analysis and marketing for the market of mobile apps. The Liftoff Mobile Gaming Apps Report 2017 revealed that casino games content that was delivered via a mobile platform had very high retention rates and had players playing for a relatively long time.

Casual games in the mobile environment scored a bit lower when it comes to player retention and monetization. RPGs and strategy games on a mobile platform generated a lot of revenue but had player retention and other factors somewhere between casino and casual games. It was also noted in the report that casual games struggled in getting more players, while casino games had a lot more success.

In a statement, JP Morgan analysts said

About a decade ago, up front paid apps was the business model of choice but now a majority of app store revenue is generated from free-to-play apps. Around 79 percent of gaming apps utilize in-app purchasing techniques, while 49 percent of all mobile app developers use in-app advertising for non-gaming