Breaking News: Animoca Brands Sees Revenue Surge as AI Cuts Costs by 12% | 2025
Animoca Brands Revenue Surge Driven by AI Cost Reductions
Animoca Brands, a prominent player in the gaming sector, has reported a remarkable increase in revenue, showcasing the effectiveness of its innovative strategies. The company revealed that its revenue, which encompasses both actual earnings and deferred revenue, has seen a significant boost, largely attributed to its Digital Asset Advisory (DAA) business.
Record Bookings and Growth in 2024
In 2024, Animoca Brands’ DAA business generated an impressive $165 million in bookings, marking a staggering 116% increase compared to the previous year. This growth reflects the company’s strategic focus on expanding its operations beyond traditional gaming revenue streams. Additionally, its subsidiaries and incubated projects contributed $110 million in bookings, while investment activities added another $39 million to the total.
Expansion into New Growth Areas
According to Yat Siu, co-founder of Animoca Brands, the company is not only thriving in its traditional operations but is also actively pursuing new growth areas. These include advisory services and real-world asset (RWA) projects in collaboration with major partners like Standard Chartered and Hong Kong Telecommunications. Siu expressed optimism about the company’s future, projecting continued growth through 2025, fueled by evolving political dynamics in the United States.
Addressing Economic Concerns
While Siu acknowledged potential economic risks, he emphasized the importance of maintaining a long-term perspective on market trends. The company’s ability to adapt and innovate has positioned it well to navigate challenges and seize opportunities in the ever-changing landscape of the gaming and digital asset sectors.
DAA: A Testament to Web3’s Potential
The DAA has emerged as a standout performer within Animoca Brands, showcasing the benefits of Web3’s shared network effect. Siu described the advisory business as a practical demonstration of how the company’s expertise can support its portfolio companies. The substantial increase in bookings serves as a testament to the success and synergy of this strategic approach.
Cost Optimization Through AI
In addition to revenue growth, Animoca Brands has successfully reduced its operating expenses from $246 million in 2023 to $217 million in 2024, representing a 12% decrease. This reduction is attributed to optimization initiatives that began in the latter half of 2023, coupled with the implementation of new artificial intelligence tools. Siu revealed that the company is leveraging AI across various applications, including investment decisions, game development, and cost optimization.
Training AI for Future Success
“We are even training AI agents using the experience and skillsets that we have accumulated in-house,” Siu stated, highlighting the company’s commitment to harnessing technology for future growth. By integrating AI into its operations, Animoca Brands aims to enhance efficiency and drive innovation in its projects.
As the gaming industry continues to evolve, Animoca Brands is well-positioned to capitalize on emerging trends and technologies. With a strong focus on revenue growth, cost optimization, and strategic partnerships, the company is set to navigate the challenges of the market while delivering value to its stakeholders. For more detailed insights, visit the original article.