Tencent has really convinced investors this year, especially thanks to thehuge success of DnF MobileThe company’s capitalization is grew by 91 billion dollars from 1 January 2024.
This represents a growth of 28%, which has outpaced that of other major Asian companies. For comparison, Nintendo and Nexon’s market value has increased by 20% and 15% respectively in the same period. Tencent is currently the second largest company in the region by market capitalizationbehind only Taiwanese chipmaker TSMC.
Mind-boggling numbers
According to the general director of Union Bancaire Privee, Vey-Sern Ling, the company’s shares are gaining value thanks to “more positive prospects, because the video games division has started to grow again and its advertising business is gaining market share”.
This includes the success of Dungeon & Fighter Mobile, recently released in China, which generated over $63 million in revenue on iOS in its first week. According to Sensor Tower, the game reached $270 million in player spending on the App Store after one month of launch. More than the budget of most AAAs.
Analysts expect DnF Mobile to stay first among this year’s novelties and become “Tencent’s most successful new game in the past five years.” Given how its launch went, it could surpass $2 billion in revenue by the end of 2024, figures that the traditional market can only dream of.
Another success of the company, albeit smaller than DnF Mobile, is Squad Busters, made by the subsidiary Supercell. It is the first game launched by the studio in the last six years and has already exceeded 28 million dollars in player spending.
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