Performance Analysis and Future Outlook of Public Gaming Companies

Mobile Gaming Industry Analysis: Strong Performance of Global Giants

In recent years, the mobile gaming industry has undergone a massive transformation in the global entertainment market. The widespread use of smartphones and the flexibility offered by mobile platforms have pushed competition in the gaming industry to new heights. Leading this revolution, giants such as Tencent, Supercell, Netmarble, and other major players continue to shape the sector, generating billions of dollars in revenue from mobile games. With continuous technological advancements and growing user interest, these companies are not only producing games but also building the future of the gaming industry. Below is a closer look at the remarkable performance and strategic moves of these industry leaders:

Tencent’s Massive Revenue Performance

In the past year, Tencent’s mobile applications were downloaded 750 million times, generating revenues of over $7.6 billion. Of this, $1.2 billion came from PUBG Mobile. The company’s primary mobile gaming revenue, however, still comes from Honor of Kings, launched in 2015. This RPG title has generated over $12 billion in total revenue.

The revenues from Honor of Kings and PUBG Mobile highlight Tencent’s diversified revenue model, forming the foundation of a sustainable growth strategy and providing a strong advantage for future success.

Supercell and Its Iconic Games

As one of the creative pioneers of the mobile gaming world, Supercell has seen tremendous success with its iconic game Clash of Clans, which has entertained players since 2012. With nearly 1 billion downloads, it has generated more than $7 billion in revenue to date. Supercell was acquired by Tencent in 2016.

Another hit came in 2018 with Brawl Stars, which initially declined after its early success. However, it made a strong comeback in December 2023, proving that popular games can always rebound. Monthly revenues, which had fallen to $10 million, surged to $80 million per month following updates over the past year.

Take-Two and Zynga: A Strong Entry into Mobile Gaming

Another major move in the industry was Take-Two Interactive’s acquisition of Zynga, which marked a powerful entry into the mobile gaming market. In 2022, Take-Two acquired Zynga for $12.7 billion. A significant portion of Zynga’s value came from its acquisitions of Turkish companies.

Among Take-Two’s top five games are Peak Games’ Toy Blast and Toon Blast, which together have generated over $2.7 billion. In addition, Gram Games’ Merge Dragons has produced over $800 million in net revenue.

Netmarble’s Success and Strategic Acquisitions

South Korean gaming giant Netmarble has also achieved strong results through strategic acquisitions. Its top five revenue-generating titles include Jackpot World, Lotsa Slots, and Cash Frenzy, which entered its portfolio through the acquisition of U.S.-based SpinX. Marvel Contest of Champions, long one of its top-performing titles, was added through its acquisition of Canada-based Kabam.

Netmarble’s most successful game, Lineage 2: Revolution, remains its highest-grossing title with over $1.6 billion in total revenue. Additionally, Seven Knights has generated more than $1 billion since its launch in 2014, showcasing the immense value of creating a proprietary IP.

Nexon’s Challenging Period

Another South Korean giant, Nexon, has struggled to sustain success in the mobile gaming sector. Since 2021, it has failed to achieve major breakthroughs, and by 2024, its monthly mobile downloads dropped below 1 million. While it still generates around $20 million monthly in mobile gaming revenue, forecasts suggest this figure may decline further in the coming year.

Tencent and Sustainable Growth

One of the top holdings in our BTE – Gaming and Technology Variable Fund portfolio is Tencent, which has consistently achieved 50–75 million new mobile game downloads each month since 2014. This decade-long stability demonstrates Tencent’s remarkable success. With continuous new user acquisition, revenue growth appears inevitable. More importantly, Tencent’s income is not reliant on a single game but spread across multiple titles, ensuring a healthy and diversified revenue structure.

Investment Opportunity: BV Portföy Gaming and Technology Variable Fund (BTE)

If you want to benefit from the growth potential offered by these gaming and technology giants and take part in the rapidly evolving dynamics of the industry, you can invest in the BV Portföy Gaming and Technology Variable Fund (BTE). Our fund allows you to add long-term gain potential to your portfolio by investing in industry leaders.

BTE – Gaming and Technology Variable Fund:
As Turkey’s first and only thematic fund holding at least 80% of its portfolio in domestic and international gaming and technology companies, BTE provides investors with exposure to the global gaming trend. Our fund invests in five of the world’s nine largest gaming and technology companies, with portfolio holdings including Activision Blizzard, EA Sports, Take-Two Interactive, Nintendo, Nexon Games, Tencent, Capcom, and Konami.

You can invest in our fund via TEFAS under the BTE code through all intermediary institutions and banks’ websites and mobile applications, or directly by opening an account with BV Portföy.

For more information, visit: www.bvportfoy.com. | Contact us to invest: [email protected]