Tencent’s Profit Soars by 89 Percent while the Chinese Giant is in the midst of a Game Boom
Chinese multinational technology conglomerate holding company and the world’s largest video game vendor “Tencent” on Thursday, reported a profit increase by 89 per cent with its blockbuster game honor of kings and solid advertising firms, help it to beat forecasts and raise its share. However, Tencent Holdings Limited Company by revenue has benefited from the healthy growth of paying customers for video games in China and international markets.
Meanwhile, the world’s largest gaming firm ‘Tencent’ made 38.5 billion yuan (5.8 billion dollars) profit for the three months through September and the flagship game Honor of Kings revealed a record of 100 million daily active customers in the first 10 months of 2020.
According to data from Refinitiv, the revenue rose 29 per cent to 125.4 billion yuan while the analyst average approximated 30.81 billion yuan.
Moreover, the business has also returned to normal in advertising activities following the outbreak of Covid-19, with rapid growth in sectors such as education, Internet service, and e-commerce platforms.
On Wednesday, when Tencent celebrated its 22nd birthday, they rebounded from a 7 per cent jump as investors have sold shares in Chinese tech companies following the publication of the proposed anti-monopoly rules which has made hundreds of billions of dollars disappear from some tech giants, including Alibaba.
In a statement, Tencent said the year-on-year revenue growth rate was, therefore, lower than previous quarters, which we expect to be temporary in nature. The company also said that the revenue from its cloud and other business services, a potential future growth engine, were affected by the persisting impact of the coronavirus pandemic, such as setbacks in project deployment and new contract sign-ups.
