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4 Australian Esports Stocks
Oct. 20, 2022 01:25PM PST
Australian esports stocks are making moves. Here’s a look at four small- to mid-cap companies that are listed on the ASX right now.
With major esports tournaments getting sponsorships from multinational companies, including Disney (NYSE:DIS), Intel (NASDAQ:INTC) and Coca-Cola (NYSE:KO), the esports market and gaming industry continue to gain traction worldwide.
Esports Earnings notes that prize money worth over US$955 million has been awarded in the esports industry over two decades, based on available public records. The largest prize pool was worth more than US$34.33 million and was won in 2019 by the Dota 2 team OG at The International 8, the top Dota 2 tournament.
This year, Overwatch League has an impressive US$4.21 million in its prize pool. Overwatch League is Activision Blizzard’s (NASDAQ:ATVI) official esports league for its hit first-person shooter game Overwatch, and now its sequel Overwatch 2.
In Australia, a recent report from PwC shows that the country’s interactive games and esports market was worth AU$4.92 billion in 2021, and is expected to grow at a 8.2 percent compound annual growth rate to 2026. The increase is expected to be driven by greater uptake in app-based games and esports.
Below the Investing News Network lists four Australian esports stocks with market caps between AU$10 million and AU$100 million. Market cap and share price data was accurate on TradingView’s stock screener as of October 20, 2022.
1. iCandy Interactive
Market cap: AU$93.05 million; current share price: AU$0.075
Originally founded as an investment holding company in 2015, iCandy Interactive (ASX:ICI) develops and publishes blockchain-based games that have a global audience of over 350 million players. Games in its portfolio include Garfield Games, Astro Boy Games, Ancient Secrets of the Mummy and Dark Dot.
The Australian Financial Review ranked iCandy Interactive 25th on its 2020 Fast 100 list, which highlights the fastest-growing companies in Australia. The company’s game Rocky Rampage: Wreck ’em Up won Google Play’s Best Casual Game award for 2020.
In mid-2022, Singtel (SGX:Z74), Asia’s leading telecommunications company, agreed to allow iCandy to acquire an extra 16.3 percent stake in mobile game publisher Storms for AU$2.61 million. After the completion of the transaction, iCandy will have a 67.3 percent stake as opposed its original 51 percent interest.
2. PlaySide Studios
Market cap: AU$90.3 million; current share price: AU$0.62
PlaySide Studios (ASX:PLY) is a video game developer based in Melbourne, Australia. The company has a variety of games in a range of categories, with collaborations with popular entertainment studios, including Disney, Pixar, Nickelodeon and Warner Bros. PlaySide Studios’ large game portfolio spans across PC, mobile, virtual reality and augmented reality platforms.
In mid-2022, PlaySide announced the launch of its third-party publishing division “PlaySide Publishing,” which will include a variety of services, from project funding to marketing and communications. This division will provide aid for independent PC and console game developers worldwide.
3. Emerge Gaming
Market cap: AU$17.49 million; current share price: AU$0.012
Emerge Gaming (ASX:EM1) launched ArcadeX, its esports platform, in 2016. ArcadeX has now hosted over 10,000 online tournaments. The platform allows users to compete to earn rewards and prizes, including digital assets and merchandise, and enables users to be ranked through sponsored tournaments.
The ArcadeX platform has been extended through a number of markets since launching. In March 2019, Emerge Gaming partnered with Digital Circus to bridge its esports platform into North America. A month later, the company reached an agreement with distribution agent Netsport Media to broaden its platform to Africa and the Middle East. Netsport Media currently has a network that reaches over 49 countries across these markets.
In mid-2022, Emerge Gaming announced a partnership with MTN, a South African telecommunications company, to launch esports initiatives in South Africa. The goal is to reach new subscribers, and activities will include an MTN arena cup event, mini tournaments, culture and digital entertainment.
4. SportsHero
Market cap: AU$12.56 million; current share price: AU$0.021
SportsHero (ASX:SHO) is a mobile app software development company targeting the sports gaming market and serving customers in Australia and Singapore.
In April 2021, SportsHero’s app OlahBola reached a milestone of 4 million new unique users. OlahBola is for Indonesian football fans who follow leagues like Spain’s La Liga and the English Premier League.
In mid-2022, SportsHero subsidiary ESportsHero established a distribution partnership with Blackhawk Network, a leader in ecommerce solutions and gift card agreements with leading gaming companies. This agreement will ensure that ESportsHero earns commissions on a range of gift cards.
This is an updated version of an article first published by the Investing News Network in 2019.
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Securities Disclosure: I, Marlee John, currently hold no direct investment interest in any company mentioned in this article.
