Tencent's first quarter climbs on strong online gaming revenue - PingWest

Tencent's first quarter climbs on strong online gaming revenue

Tencent's first quarter climbs on strong online gaming revenue

May 20, 2021 10:25 pm

Chinese gaming and social media giant Tencent Holdings Ltd reported a 65% increase in quarterly profit driven by a surge in user for its video game as well as robust performance of its fintech and business service. 

Detail: Tencent booked a profit of CNY47.8 billion in the quarter ended March, a 65% increase from CNY28.9 in the same period of last year. Revenue came in at CNY135.3 billion, representing a year-over-year increase of 25 percent.

Gaming sector, Tencent’s major revenue contributor, booked a 17percent rise in total revenue to reach CNY43.6 billion in the first quarter, driven by robust growth in mobile gaming, which saw a year-on-year increase of 19percent to CNY41.5 billion.

Fintech and business service, Tencent’s fastest growing business, saw its revenue increased by 47% to CNY39 billion as its fintech and cloud service benefit from economic recovery from the Covid-19 pandemic last year.

Tencent advertising business also booked a 23 percent increase in revenue to CNY21.8 billion as Chinese companies increased its budget on market

Context: The Hong-Kong listed company continue growth even as the Chinese government cracks down on monopoly practices of big tech companies.

In March, the State Administration for Market Regulation (SAMR) fined Tencent for not disclosing three merger and acquisition deals to authorities. Pony Ma, the founder of Tencent Holdings, met with Beijing’s antitrust authority to discuss compliance issues.

At the meeting, the two parties discussed how Tencent could better comply with antitrust rules.

Tencent could face more penalties for market monopoly and dominance on businesses including online music streaming.

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