The only mobile game my teenage son and I have played together in recent years is Brawl Stars. So, I've been keeping an eye on Supercell, the company behind Brawl Stars. In this post, I'll examine Supercell's financial performance, future investment strategy, and outlook.
Brawl Stars and Supercell
There's one game my son and I still play together today: Brawl Stars. We've been playing together since 2019. All of his friends played it back then, and it's still one of the most popular mobile games.
So, I've been looking closely at Brawl Stars and Supercell, a mobile gaming company now acquired by Tencent and continuing to thrive. Let's take a closer look today.
The latest growth trends in Brawl Stars
As of February 2024, Brawl Stars has solidified its position in the global mobile gaming market, generating over $2 billion in revenue worldwide.
In particular, the Korean market accounts for the second highest sales share after the United States. In February 2024, monthly sales reached approximately $7.5 million, the highest monthly sales achieved in approximately 50 months.no see.
Additionally, the number of daily active users (DAUs) has steadily increased since August 2023, reaching its highest level since February 2019 on March 24, 2024. This indicates a significant increase in player engagement.
Super Cell
Founded in 2010 and headquartered in Helsinki, Finland, Supercell has consistently chosen private institutions.
In 2013, a majority stake in 51% was acquired by SoftBank and Gungho Online Entertainment for €1.1 billion. In 2015, SoftBank increased its ownership to 73.2%.
In 2016, Chinese tech giant Tencent acquired an 84.31 tpytm stake in Supercell, valuing the company at $10.2 billion.As a privately held company, Supercell doesn't disclose detailed financial information, but the success of Brawl Stars appears to be contributing to its positive financial performance.
Growth, particularly in the Korean market, is contributing to Supercell's overall revenue growth.
Expansion and profitability of the esports market
The Brawl Stars esports ecosystem continues to expand. The 2025 Brawl Stars Championship season has begun, and the East Asia region is hosting monthly finals in March, further increasing the competition.
such Esports activities increase the popularity of games and provide additional revenue-generating opportunities.Supercell has a variety of revenue models, including sponsorship deals, broadcasting rights, team franchises, and digital merchandise sales, which contribute to the diversification of its revenue streams.
Key Investment Implications and Risk Factors
Investment Implications
1. Expansion of the user base : Brawl Stars is strengthening its position in the global market by acquiring new users from various regions.
2. Activation of e-sports : We are extending the lifespan of our games and increasing user engagement through active investment in esports and hosting competitions.
3. Content Updates : We maintain user satisfaction through continuous content updates, addition of game modes, and development of new characters.
Risk factors
1. Regulatory Risk : Some countries are strengthening restrictions on game usage time and payment systems, which may affect game revenue.
2. Intensifying competition : As competition in the mobile gaming market intensifies, new popular games could threaten Brawl Stars' market share.
Outlook and Investment Strategies Beyond 2025
The growth outlook for Brawl Stars and Supercell remains positive beyond 2025. The following factors are expected to support long-term growth:
1. Securing emerging markets Brawl Stars has significant growth potential in emerging markets like India, Brazil, and Southeast Asia. Increased smartphone penetration and data accessibility in these regions will lead to further expansion of the user base.
2. Utilization of 5G technology : The spread of 5G technology will significantly improve the quality and user experience of mobile games, and Brawl Stars is expected to provide optimized services to keep pace with these technological advancements.
3. Cross-platform strategy : Supercell is considering releasing Brawl Stars on PC and consoles, which would help attract new players.
4. Community-driven development One of Supercell's strengths is its approach to game development, which relies on active community engagement. This fosters user loyalty and ensures long-term game lifespan.
Practical Advice for Investors
1. Long-term investment perspective : Tencent stock, Supercell's parent company, may experience short-term volatility, but it represents a promising investment with significant long-term growth potential. It's particularly suitable for investors who believe in the structural growth of the gaming industry.
2. Portfolio Diversification : In addition to Tencent, it is advisable to diversify risk by investing in other companies within the gaming industry value chain (e.g., game streaming platforms, esports-related companies).
3. Watch the performance announcement : Keep an eye on Supercell and Tencent's quarterly earnings reports, especially Brawl Stars' monthly active users (MAU) and average revenue per user (ARPU) metrics.
4. Understanding industry trends : It is important to continuously monitor the adoption of new technologies such as the metaverse, AI-based games, and blockchain games.
conclusion
Brawl Stars is evolving beyond a simple mobile game into a global entertainment platform.
As of March 2025, Brawl Stars' continued growth and Supercell's innovative business strategy present attractive opportunities for investors.
