NQ Mobile Inc.
) subsidiary, FL Mobile, will exclusively offer the Andriod
version of Ubisoft's
Rabbids Big Bang
in China, per an agreement inked between the two companies.
Rabbids Big Bang
is a physics-based mobile game that enables players to pilot
in space and complete certain missions. The game is also
available for Apple's iOS platform, which has a Metacritic rating
Leveraging the current partnership with Ubisoft, FL Mobile
will strengthen its position as a mobile game publisher and
platform provider in the surging China Mobile gaming market.
iResearch, a research firm that focuses on China's Internet
industry, reported that in the third quarter of 2013 revenues
from mobile games increased 75% compared to the previous year.
The firm also forecasts that the revenues will surge in the
forthcoming quarters as well.
Moreover, the current partnership will help Ubisoft to market
other games using FL Mobile's huge registered user base of
approximately 98 million. FL Mobile also has 19 million monthly
It is worth noting that NQ Mobile reported an increase in
mobile game revenues due to better-than-expected user growth of
FL Mobile's gaming platform and new game launches during the last
reported quarter. The company distributed 22 iOS games and 52
Thus, we believe that NQ Mobile's exclusive agreement with
Ubisoft bodes well for its future prospects in China. However,
the surge in demand for mobile games in China has prompted other
game publishers such as
) PopCap Games to increase focus on the country. Moreover,
competition from other domestic game publishers is a concern.
Currently, NQ Mobile has a Zacks Rank #3 (Hold). Investors can
also consider other better-ranked stocks, such as
), both of which sport a Zacks Rank #1 (Strong Buy).
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