After topping $34b last year, the mobile gaming industry continues to assert its dominance in the digital world, having already overtaken both PC and applications as the primary source of gaming world-wide. With the development of new platforms and innovative gaming options for consumers, companies like Tapinator, Inc. reported today that they have 18m average monthly active users, with their second quarter revenues growing 73 per cent with double digit year over year revenue growth.
The company attributes their revenue expansion primarily to the continuous expansion of the rapid-launch games portfolio as well as the launch of their highly successful video poker classic title.
"We are very pleased with our second quarter results as we saw significant year-over-year player and revenue growth rates combined with increased diversification of our revenue base. Player engagement accelerated toward the end of quarter and thus we believe the Company is well positioned to continue to deliver strong revenue and EBITDA growth during the second half of this year."
The Company ended Q2 with 244 active games, of which 31 were released in the quarter. As of June 30, 2016, Tapinator had 66 titles in its portfolio that had each achieved at least one million downloads, up from 51 games that had reached this milestone at the end of Q1 2016. Within our Rapid-Launch Games business, Crocodile Attack 2016, Multi-Storey Car Parking 3D, and Extreme Car Stunts 3D performed especially well, with over 9.5m downloads and 180,000 daily active unique (DAU) players in Q2. These three titles illustrate the diversity of the Company's portfolio as they encompass three genres: Parking, Stunts, and Animal Simulation.
In Q3, Tapinator will be launching Big Sport Fishing 2017 in partnership with RocketMind. Given the recent success of the Pokémon Go mobile game from Nintendo and Niantic, they believe the market's embrace of augmented reality is here to stay. In Big Sport Fishing 2017, players will enjoy using their phone as a virtual fishing rod to tackle gorgeous global fishing environments around the world and from their own home or office.
In other gaming news, Penn National Gaming, Inc. announced recently that it acquired Rocket Games, Inc. ("Rocket"), a leading developer of social casino games, for approximately $6m cash, subject to working capital and other adjustments, including potential earn-out payments for certain members of the Rocket Games management team. The earn-out payments over the next two years will be based on a multiple of 6.25 times Rocket's then-trailing twelve month earnings before interest, taxes, depreciation and amortization ("EBITDA"), subject to a cap of $110m for the earn-out. The transaction is expected to be immediately accretive to Penn National's operating results.
In additional news, Nintendo Co. Ltd. announced that the Pokemon game has already generated $250m in revenue, with an added note that the Pentagon isn't keen on the game being played at its facilities as reported by The Financial Times, who notes that the $250m revenue figure from a survey of nearly 50,000 people in the U.S., U.K. and Germany. The augmented reality mobile game -- in which players try to capture Pokemon characters that suddenly appear on their mobile device screens -- was released July 6 in the U.S. and later in the month in most other countries, including the U.K. and Germany. The game is free to play, but players can buy in-game items that enhance the experience and help them advance.