Activision Expands Candy Crush Franchise with New Release

Activision ATVI is all geared up for its biggest release from the Candy Crush franchise. The company’s King Digital unit recently announced that Candy Crush Friends Saga will be launched on Oct 11, globally.

The game features exciting game modes and new content. With a new strategy in place, King Digital allows players to engage deeply with the game characters, which is expected to boost engagement level.

Additionally, Candy Crush Friends Saga features a 3D world where players can engage in the new game play experience.

The company noted that Candy Crush Friends Saga will be launched at a live gameplay event in New York City where a few players will be selected to first play the globally launched game.

Notably, the game, which will be launched on Android and iOS platforms, has been available in beta version to limited users since May 2017.

Activision Blizzard, Inc. Revenue (TTM)

Activision Blizzard, Inc Revenue (TTM) | Activision Blizzard, Inc Quote

Mobile Gaming Drives Growth

Activision continues to bank on mobile platform to drive top-line growth. In the last reported quarter, mobile and ancillary revenues (31.7% of revenues) increased 5.7% year over year, while revenues from console (34.4% of revenues) and PC (27.5% of revenues) declined 0.5% and 11.2%, respectively.

We believe Activision’s strategy to generate more revenues from the mobile platform bodes well. Per Newzoo, by 2020, more than 50% of the revenues will come from mobile games.

Notably, King Digital’s Candy Crush Saga and Candy Crush Soda Saga continue to be two of the top 10 grossing games on iOS and Android app stores (U.S.).

Additionally, in the last reported quarter, King Digital’s total revenues of $502 million increased 4.6% year over year driven by continued investments in live services, features and content.

King Digital reported monthly active users (MAUs) of 270 million in the June quarter. Moreover, time spent per player remained strong at 36 minutes.

Competition A Concern

Activision faces competition from other game providers like Zynga ZNGA, Take Two TTWO, Electronic Arts and Epic Games, among others.

Zynga recently announced a multi-year partnership with World Poker Tour (WPT), a noted international poker tournament series. The company’s biggest in-game deal incorporates the WPT experience into Zynga Poker, one of the popular free-to-play poker games.

Apart from partnering with WPT, Zynga also recently entered into a multi-year partnership with Disney DIS to develop video games based on the Star Wars franchise. Notably, Zynga’s mobile revenues (88.8% of total revenue) increased 7% year over year to $192.7 million.

Additionally, the increasing popularity and features of Epic Games’ Fortnite, which won the best ongoing game award, is a concern for the company.

Moreover, with the release of Take Two’s Red Dead Redemption 2, and EA’s FIFA 19 and Battlefield V competition further intensifiesin the gaming space.

Nevertheless, this Zacks Rank #3 (Hold) company with its new game Call of Duty: Black Ops 4, set to release in October, is expected to gain competitive edge going forward.

You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

Today's Stocks from Zacks' Hottest Strategies

It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6% and +67.1%.

And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.

See Them Free>>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Zynga Inc. (ZNGA) : Free Stock Analysis Report
 
The Walt Disney Company (DIS) : Free Stock Analysis Report
 
Activision Blizzard, Inc (ATVI) : Free Stock Analysis Report
 
Take-Two Interactive Software, Inc. (TTWO) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research