Why Garena Can Boost Tencent's Revenue From Mobile Games
by Motek Moyen
Summary
Garena has launched Arena of Valor in South East Asia. Arena of Valor is the English version of Tencent’s Chinese MOBA mobile game, Honor of Kings.
The China-only Honor of Kings is the world’s top-grossing mobile game. However, Tencent imposed daily playing time limit for teens in China last July.
Honor of Kings’ revenue stream in China will be affected by the restriction on daily playing time. Garena's Arena of Valor can improve Tencent’s revenue from mobile games.
Garena is partly-owned by Tencent. It is also the biggest online games operator in South East Asia. South East Asia has a fast-growing mobile games industry.
Garena is planning its $1 billion U.S. IPO. Garena might also become the publisher for Arena of Valor in North America.
As per Statista’s 2016 estimates, South East Asia’s mobile gaming industry generated $828.5 million in revenue last year. This is expected to grow to $1.8 billion by 2020.
Prior to the daily play time restrictions, Honor of Kings could generate monthly revenue of 1.8 billion Yuan ($271 million).
Tencent previously announced that it also plans to launch Arena of Valor in the U.S. It makes sense to expect that Tencent will again pick Garena to be the North America publisher of Arena of Valor.
Source: Seeking Alpha
https://seekingalpha.com/article/411468 ... bile-games