Mobile revenue roundup - WK 37

Archosaur gets into our watchlist with the new Dragon Raja game top 20 in China

Hi! We’ll take a bit of time off and will be back on Oct. 7th.

We maintain a complete database of all publicly traded companies that are active in mobile marketplaces, and estimate their mobile revenue on a daily basis using proprietary tools.
This dash looks at trends in weekly revenue, and is one of multiple used for triage towards researching companies.

Public companies Dashboard - Highlights

Here is the dash, remarks below:

Reminder: The % shown is an increase/decreased from last week’s estimated mobile revenue and and the average of the past 6 weeks of mobile revenue.

Winners of this week

• Nothing worth mentioning on US-traded markets wrt mobile revenue. We checked, there is no catalyst. Chegg (CHGG) is back 2 weeks in a row. Nothing to see here, we covered it last week.
  

  Worldwide markets

• Archosaur (9990.HK), sometimes called Zloong, is our most interesting stock this week. Their revenue soared +71% following a new Dragon Raja (龙族：卡塞尔之门) game released late in the week in China, and hitting the top 20 overall grossing.
  Given how the stock has been battered in the last year, could this be their new break? A rapid glimpse at their financials and operating results tells us it’s worth putting them on our watchlist. But its valuation reflects its poor results since IPO, and lack of profitability.
  Don’t be fooled by the following chart - this week’s hike is not just another “Life Makeover” update, and will have longer lasting power.

  

  This is quite significant because:

  • Archosaur is a $150M market cap company

  • The new Dragon Raja is making an est. $200K/day right now on iOS only, so likely about $600K/day when factoring Android. Should this success continue, this could be a $30-$40M a quarter game and bring Archosaur back to profitability.

  That’s quite some “IFs” so we’ll wait a bit more. But Archosaur enters our watchlist.

• Softstar Entertainment (6111.TWO) is a Taiwanese mobile game publisher. We know the company as they published Aiming Inc (3911.T) games in the past. Their +132% in weekly est. revenue is driven by the release of 2.5次元的誘惑 天使們的舞台, which happens to be another Aiming game. Aiming published the game themselves in Japan.
  Whilst it’s nice to see such a surge, the reality is that it’s too small to be a catalyst, with revenue moving from $5K/daily to maybe $15K. That won’t move the needle much, neither for Aiming or for Softstar.
  Here’s the chart:

  

• Enad Global 7 (EG7.ST) '‘s increase is slightly more interesting, as it is driven by a steady hike in their… one-hit on mobile, “My Singing Monsters”. We’ve had great success with Enad in the past, but this increase isn’t yet worth a deeper watch. It’s also relatively unsignificant with regards to their other, larger, non-mobile revenue.

  

• We glanced at the other companies in the top list, and there was no catalyst worth diving into beyond those above.

Loosers this week

We checked - nothing new under the sun. Worth mentioning:

• Bilibili (BILI), as expected, sees its revenue decline following a really successful release in June. As covered last week, no reason to worry here.

Follow Ups / Watch list

• Gala Technology (2458.HK): slightly lower revenue this week, could the new basketball loosing a bit of steam. Time for a rebound? ;) In any case, what a start to their H2 2024:

  

  Chart only considering iOS China (so triple that red line if you want an assumption of iOS + Android in China)
  And investors haven’t noticed at all yet, as highlighted by the stock (in black) not reacting.
  

• ZenGame (2660.HK) had another good week. See last week’s comment as to why it’s on our watchlist. No catalyst, just steady success and super low valuation.

Conclusion

• Archosaur is our highlight this week. Enters watchlist due to a new Dragon Raja game that has the potential to bring them back to profitability, currently top 20 in China.