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Gaming stocks now worst-performing sector of 2021 as players return to real world post-lockdown

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Basket of top gaming companies down this year despite company revenues thriving from higher consumption during pandemic Factors affecting the downturn: – Reopening of economies as vaccines are rolled out – Employment soaring post-lockdown resulting in less gaming consumption Peter Garnry, Head of Equity Strategy at Saxo Group, has analysed the situation as Saxo’s Gaming basket is the worst-performing equity theme year-to-date. He said: “Our gaming theme basket is the worst-performing theme this year down 14.7% driven by a moderation of gaming consumption driven by the reopening of economies as vaccines are rolled out and employment is soaring. “Despite some moderation in gaming consumption and investors taking profit, the long-term outlook remains strong with a recent PwC report highlighting that gaming and esport growth is expected to grow 32% from 2021 to 2025. With gaming being very profitable for those with hit games the profit margins are luring new entrants into the industry. Netflix is branching into gaming with its large user base which could increase competition for other existing companies and squeeze smaller players with less distribution.

Our gaming basket is showing healthy revenue growth of 30.3% and EBITDA growth of 43.6% y/y, and analysts have not reduced their price targets much despite falling gaming stocks with the median price target being 36.6% above current prices suggesting strong sentiment. The video card manufacturers NVIDIA and AMD are among the few gaming related companies with either a negative or low price target relative to the current price as the semiconductor constraints are now becoming a constraint on revenue growth for these two companies.“We remain positive long-term on the industry and the overall valuation picture also looks attractive combined with strong profitability in the industry. The key risks are naturally stricter regulation out of China, stronger pace on employment reducing gaming consumption, and higher interest rates impacting valuations negatively.”

Equity Theme Basket

Year-to-Date Return (%)

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Crypto & Blockchain

103.8%

Cannabis

43.8%

India (GDRs)

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32.1%

Logistics

31.5%

Financial Trading

27.8%

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3D Printing

21.1%

Commodity Sector

20.9%

Semiconductors

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18.4%

Battery

17.4%

MSCI World (USD)

16.6%

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Mega Caps

14.6%

Cyber Security

12.2%

Travel

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4.2%

NextGen Medicine

2.7%

MSCI EM (USD)

1.8%

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Green Transformation

0.3%

E-Commerce

-2.8%

China Consumer & Technology

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-9.0%

Bubble Stocks

-9.7%

Gaming

-14.7%

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Source: Bloomberg and Saxo Group All trading carries risk.  Any past performance stated is not an indication of future performance.

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Merkur Dosniha and Spintec, extraordinary partnership for the Spanish market

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An exciting start to a new cooperation.

As is well known, Merkur Dosniha introduced electronic roulette wheels to the Spanish market more than two decades ago, and since then, it has been the main distributor of this product on Spanish territory. In a recent step, it has joined forces with a new partner, Spintec, to continue its trajectory in the Spanish market. A beneficial agreement with an emphasis on collaboration and joint development of new products.

Spintec is among the best roulette manufacturers in the world. They have been present in Spain for more than 11 years and have been a trusted partner of Merkur Gaming since 2018. Their products are present in more than 500 casinos on six continents, including most of the most demanding international markets. Their greatest strengths are their flexibility, expertise and exceptional commitment to their customers.

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The cooperation has already resulted in an exciting new patented product that has been developed by the research and development teams of both companies fully involved and working side by side, using their well-versed expertise and, above all, with the unbridled enthusiasm for a new creation. The result of this joint effort is called Spectra: an exciting new product that incorporates features and functionalities which place it in a class of its own.

Carlos Chacón, CEO of Merkur Dosniha, comments: ‘In a way, Spectra is the natural response to applying our experience and knowledge in a field we have mastered. We are very happy to have chosen a perfect partner to help us implement it. We have a long track record ahead of us, which makes me even more confident that similar success stories and lasting stability will follow in the years to come’.

Goran Sovilj, Spintec’s Global Sales Director, agrees: ‘Spintec has been present in Spain for more than a decade and now it’s time to enhance our presence. With Merkur Dosniha we have chosen a partner with a proven track record and superior market knowledge, which makes it much easier for us to perform well.Spectra is the first proof of our compatibility and a guaranteed success in the market, but it definitely won’t be the last.“

The post Merkur Dosniha and Spintec, extraordinary partnership for the Spanish market appeared first on European Gaming Industry News.

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Wazdan launches biggest ever Mystery Drop™ network promotion with €4,000,000 prize pool

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Wazdan, the gain-focused developer behind some of the world’s most rewarding casino game experiences, is thrilled to announce its largest Mystery Drop™ Network Promotion, with a larger-than-ever prize pool.

Running from 29th April to 29th September 2024, this monumental promotion offers an astounding €4,000,000 in total wins across Q2 and Q3.

The Mystery Drop™ Network Promotion showcases the provider’s commitment to delivering unparalleled experiences and rewards for players worldwide. Leveraging the highly acclaimed Mystery Drop™ promotional tool, which has been the driving force behind numerous successful campaigns, this promotion is set to captivate players and elevate engagement to new heights.

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All Wazdan titles will participate in the promotion, with a special emphasis on the immensely popular Coins™ series. This collection of games has not only become a player-favourite but also consistently ranks among the provider’s top-performing offerings.

The Mystery Drop™ tool seamlessly integrates with Wazdan’s cutting-edge games, enabling operators to create bespoke promotions that align with its unique brand and player base. By offering such a substantial gain pool and extended promotional period, Wazdan aims to strengthen its partnerships with operators while providing players with even more chances to win big.

Andrzej Hyla, Chief Commercial Officer at Wazdan, said: “We are incredibly excited to launch our biggest Mystery Drop™ Network Promotion to date. With a staggering €4,000,000 up for grabs, this promotion exemplifies our dedication to crafting unforgettable experiences for players.

“By harnessing the power of our Mystery Drop™ tool and showcasing our immensely popular Coins™ series, we are confident that this promotion will be a resounding success. We look forward to collaborating with our valued partners to bring this thrilling opportunity to players across the globe.”

The post Wazdan launches biggest ever Mystery Drop™ network promotion with €4,000,000 prize pool appeared first on European Gaming Industry News.

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PRAGMATIC PLAY DROPS CANDY BLITZ BOMBS

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Pragmatic Play, a leading content supplier to the iGaming industry, has sweetened its Slots selection with the launch of sugary sequel Candy Blitz Bombs.

Building on the popularity and success of the original Candy Blitz game, the new 6×5 Slot can award wins and set off tumbles when eight or more matching sweet symbols land anywhere on the reels in the same spin.

Next to the grid, a progressive multiplier reel increases by 1x after each consecutive tumble before multiplying the overall tumble win. Colourful candy bombs can also hit with random multipliers of between 3x and 500x, which are then added to the multiplier reel to further boost win potential.

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Hitting four, five or six scatters awards entry to the bonus game with 10, 12 or 14 free spins respectively. During the feature, which can be retriggered with five additional free spins, the multiplier reel does not reset between free spins, meaning multiplier bombs can set off even sweeter rewards.

Candy Blitz Bombs is the latest addition to Pragmatic Play’s multi-award-winning portfolio, following recent hits such as Release the Bison and Big Bass Secrets of the Golden Lake.

Irina Cornides, Chief Operating Officer at Pragmatic Play, said: “Pragmatic Play journeys deeper into its colourful world of candy with Candy Blitz Bombs, which features a progressive multiplier reel and random multiplier bombs that can boost wins by up to 500x.”

The post PRAGMATIC PLAY DROPS CANDY BLITZ BOMBS appeared first on European Gaming Industry News.

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