Zynga (ZNGA) Expands Mobile Portfolio With Harry Potter Game

Zacks Equity Research
·3-min read

Zynga ZNGA recently announced the availability of Harry Potter: Puzzles & Spells, a Match-3 mobile game featuring the soundtrack and voiceover recordings from the original Harry Potter films.

The free-to-download mobile game is available on iOS and Android-based devices as well as on Amazon Kindle and Facebook.

Zynga also announced that players downloading the game over the next seven days on iOS and Android devices “will instantly receive the Welcome Bundle, containing in-game gold, extra lives and special Quidditch Goggles to customize their avatars.”

Robust Mobile Games Portfolio Aids Growth

Zynga’s robust mobile games portfolio has been its major driver in recent times. The company is benefiting from growth in mobile-live services, supported by its five forever franchises, namely CSR Racing, Words With Friends, Zynga Poker, Empires & Puzzles and Merge Dragons!.

Markedly, shares of Zynga have returned 42.2% year to date against the Zacks Gaming Industry’s decline of 21%. It has also outperformed video game giants Electronic Arts EA, Activision Blizzard ATVI and Take Two Interactive TTWO.

Year-to-Date Performance

 

 

The launch of Harry Potter: Puzzles & Spells is in line with Zynga’s focus on enriching its portfolio through game launches, partnerships and acquisitions.

Games like Merge Magic!, Farm Ville 3, Game of Thrones Slots Casino and Word Pop are expected to boost top-line growth. The expanding portfolio is attracting gamers as people remain confined to their homes due to the coronavirus-led lockdowns and shelter-at-place guidelines.

Markedly, Zynga’s average mobile daily active users (DAUs) increased 4% year over year to 22 million in second-quarter 2020.

Further, Zynga’s partnerships with Snapchat-parent Snap as well as NASCAR are noteworthy developments. The company is developing exclusive multiplayer games for Snap’s gaming platform.

Meanwhile, the agreement with NASCAR will help it feature the iconic NASCAR Cup Series Chevrolet Camaro ZL1 1LE race car as an unlockable car in CSR2 American Road Trip Series.

Additionally, acquisitions of Istanbul-based Rollic and Peak further expand this Zacks Rank #3 (Hold) company’s gaming portfolio. Notably, Rollic’s hyper-casual games have been downloaded more than 250 million times. Moreover, Peak’s acquisition adds hit franchises like Toon Blast and Toy Blast to Zynga’s portfolio. You can see the complete list of today’s Zacks #1 Rank(Strong Buy) stocks here.

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