Tencent has really convinced investors this year, especially thanks to thehuge success of DnF Mobile. The capitalization of the company 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 Union Bancaire Privee CEO Vey-Sern Ling, the company’s shares are gaining value thanks to “a more positive outlook, because the video game division has returned to growth 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 triple-A clubs.
Analysts expect DnF Mobile to remain first among the new features this year and become “Tencent’s most successful new game in five years.” Considering how the launch went, by the end of 2024 it could exceed $2 billion in revenues, figures that the traditional market can only dream of.
Another success of the company, albeit smaller than DnF Mobile, is Squad Busters, created by the subsidiary Supercell. It’s the first game the studio has launched in the last six years and has already surpassed $28 million in player spending.
