JP Morgan Praises Aristocrat for Mobile Game Diversification

Aristocrat GamingThe reputed banking organisation JP Morgan in its recently published report has praised Aristocrat Leisure Ltd for expanding its mobile game portfolio and its overall exposure in the gaming industry. It would not only allow Aristocrat to develop its risk, but it would also give the company a golden opportunity to increase its market revenue from the mobile game industry.

The analysts from JP Morgan – Shalin Doshi, Shaun Cousins and Donald Carducci in their report have mentioned that Aristocrat has done a great job at strengthening the digital offering to customers and generated 38% of the fiscal revenues in this current year.

At the moment, mobile gaming is regarded as one of the booming destinations in the global market and is growing at a tremendous rate. According to the experts, this industry is growing at a phenomenal pace of 14%, and game operators like Aristocrat are on the hunt to capture the most significant share from this profitable market.

Recently, this mobile gaming operator has paid a whopping $500 million in acquiring a social gaming firm called Plarium Global Ltd. This acquisition has made Aristocrat a lot more stable in the current gaming scenario, and it has established itself as a robust social gaming and online casino brand. According to Trevor Croker who is the CEO of Aristocrat, this recent deal has taken the social casino segment from $3.2 billion to $25.4 billion after the addition of online gaming segments like RPG and casual gaming.

According to the team of analysts at JP Morgan, the diverse mobile game portfolio of Aristocrat has a lot of potential in minimising the risks for the company and allowing it to generate more revenue in return.

Mobile Gaming: A Lucrative Avenue for Operators

The analysts at JP Morgan have taken time in commenting on the mobile gaming sector and have made notes from California based Liftoff which does analysis and marketing of mobile based applications. According to Liftoff Mobile Gaming App Report 2017, casino game content offered through mobile gaming platform having high retention rate and people play such games for an extended period.

However, the casual games in the mobile environment are relatively on the lower side when it comes to monetisation and player retention. The strategy based games and RPG games based on the mobile platform generates a lot of revenue but is unable to retain the player interests for an extended period. In the report, it states that casino games are far more successful than the casual games in keeping the players.

The analysts at JP Morgan made the following statement:

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

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