GungHo made $118m in April alone, market cap exceeds Nintendo

Puzzle & Dragons earning $3.75m a day, stock jumps 28.8 per cent

The incredible growth of Puzzle & Dragons developer GungHo Entertainment continues apace, as strong revenue in April pushed its market cap past Nintendo.

According to the company's latest financial report, translated by the prominent Japanese analyst Dr. Serkan Toto, GungHo made 12 billion ($118m/76m) in revenue in April alone - that's a year-on-year increase of 1,142 per cent.

And the vast majority of that money came from a single game: Puzzle & Dragons, the company's mobile smash hit, earned $113 million in April - more than $3.75 million a day. The game now has 13 million players in Japan alone, which is 10 per cent of the country's population.

In the quarter ended March 31, 2013, GungHo posted revenue of 30.9 billion, up 800 per cent year-on-year. Operating profit for the period was 18.6 billion ($183m/119m), an increase of 7,400 per cent over the prior year quarter.

The impact of these results on the company's stock has been immediate and huge. According to Dr. Serkan Toto, GungHo's share price increased by 28.8 per cent in "just a few minutes" of trading on the Osaka Stock Exchange today until it was bid-only, finally settling on 1,342 million per share.

This puts GungHo's market cap at 1.54 trillion, the equivalent of $15.1 billion - just above Nintendo's $15 billion market cap and closing in on Activision Blizzard's $16.7 billion.

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Latest comments (8)

Bruce Everiss Marketing Consultant 3 years ago
GungHo, Supercell and Rovio.
The new Electronic Arts, Activision and Ubisoft?
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Yiannis Koumoutzelis Founder & Creative Director, Neriad Games3 years ago
sounds like it.
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Greg Wilcox Creator, Destroy All Fanboys! 3 years ago
Funny. Last year, I got a press release about Puzzle and Dragons, watched the YouTube clip and after getting a solid Puzzle Quest vibe, sent a note back to the PR guy saying the game NEEDED to come to consoles and handhelds as soon as possible. Sure, it'll probably cost more, but I think it'll do well as a $5- $10 PSN or eShop download gamers can take on the road or play at home. I guess Microsoft will need to settle for a Windows Phone version (or P&D Kinect)...
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Show all comments (8)
Benn Achilleas CEO and Founder, Playabl3 years ago
it's amazing/crazy that these guys can have a higher market cap already than Nintendo.
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Caspar Field CEO & Co Founder, Wish Studios Ltd3 years ago
GungHo, Supercell and Rovio.
The new Electronic Arts, Activision and Ubisoft?
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Jim Webb Executive Editor/Community Director, E-mpire Ltd. Co.3 years ago
These market caps will not last. GungHo has a high market cap right now because they experienced a 15x in revenue since the start of the year. That kind of growth is not sustainable. As soon as their revenue rate of increase comes back down to a more sustainable level, that market cap value will plummet.

Some of you need to realize that we have a finite number of people on Earth. Eventually, mobile and tablet acquisition rates will hit a saturation point and the rate of increase quarter to quarter and year to year will drop.

Granted that still gives you a huge market to work with but much of these valuations are based on growth potential rather than sustainability. Once that saturation point starts to show itself, values will drop and drop hard.
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"GungHo, Supercell and Rovio. The new Electronic Arts, Activision and Ubisoft?"

Probably more like the new Zynga.
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Bruce Everiss Marketing Consultant 3 years ago
Now is the time of biggest commercial opportunity in the history of the video game industry.
With approaching 2 billion smartphones already in use as we head for a 7 billion total we can now reach vastly more people with our entertainment than ever before. Instant global digital distribution is a revelation. User metrics and games as a service give clever people the opportunity to make a game that just keeps on earning and entertaining.
It is eminently possible, with the right people, to go from zero to a billion+ dollar valued company in less than 12 months. We live in exciting times.
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