Leading developer and publisher of free-to-play games for smartphones and tablet devices, Glu Mobile Inc. (GLUU) recently released its third-quarter earnings. Per the earnings report, its much-talked about mobile game, Kim Kardashian: Hollywood helped it to garner a sum of $43 million within a span of just three months since its release.
Kim Kardashian: Hollywood is a freemium game released in Jun 2014. The game enables players to live the life of an A-list celebrity whereby players are allowed to make in-house purchases in order to upgrade their respective characters. Since its launch, the game has been downloaded over 22.8 million times worldwide.
The most startling fact is that in the last quarter, the aforementioned game managed to earn more revenues than the combined revenues of 10 other Glu-developed games including the likes of Deer Hunter, Dino Hunter and Dino Dash.
Earlier Glu Mobile had predicted that the game will earn revenues of $200 million in 2014. Allthough this target seems a bit far-fetched, yet considering the fact that the game is now available on Facebook (FB) as well as on Google’s (GOOGL) Android and Apple’s (AAPL) iOS-based devices, it may eventually turn into reality.
Mobile game revenues are expected to surpass console revenues driven by strong adoption of smartphones and tablets in both mature and emerging markets.
According to Newzoo, revenues from mobile games are expected to jump 42% year over year worldwide in 2014. The North American market is now expected to grow 51% year over year, while Western Europe is expected to grow 47%. Southeast Asia and China with 86% growth rate is the fastest-growing mobile game market.
We believe that Glu Mobile is well-positioned to benefit from the strong mobile games market, going forward. Moreover, it has a robust product pipeline for 2015 that includes the likes of Car Town and the free-to-play Terminator mobile game.
Currently, Glu Mobile has a Zacks Rank #3 (Hold).
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