Our weekly update shows that revenues generated by mobile games continue to increase week by week. As a proxy, we are tracking daily revenues generated for iPhone games in the USA, as provided by www.thinkgaming.com. As you can see in the chart below, there has been a gradual increase of the daily revenues generated ever since the beginning of December.
In early July, Sweden listed mobile gaming developer and publisher G5 Entertainment, announced its preliminary Q2 2014 revenue numbers which indicate a year-over-year increase of more than 80%. That is an impressive number indeed and mainly related to the rather constant performance of its blockbuster game Secret Society, which ranks around number 35 in the US top grossing iPad games charts. This is nicely illustrated by the following chart, provided by App Annie:
With the increase in the underlying market continuing, changes are high that Secret Society will generated higher sales as the year progresses.
We believe the strong market development is very bullish for the G5 case. Mobile gaming is a hot sector, which can also be seen by the recent share performance of US peer Glu Mobile. Glu’s share more than doubled since early June, following strong games’ performances. Beyond the constant market growth, that is always a “hidden” value in the G5 case as well – should the company be able to release a second “Secret Society”.
Follow the latest buzz around G5 Entertainment at www.buzztrader.se. G5 Entertainment is part of the Nordic Investor BuzzTrader portfolio.