Tencent reports great first quarter performance as game business climbs up the ladder. The multinational investment holding manages to capitalize on the growing market in the gaming industry. The company’s profit skyrockets as the popular titles surge in the industry.
Their gaming titles such as Fortnite and PlayerUnknown’s Battlegrounds managed to propel their quarterly reports. The popularity of both games managed to attract a huge number of following in the gaming community.
The popularity of the battle royal games in the community gave Tencent great profit figures. Furthermore, the company’s WeChat also managed to pull off some great figures from its monthly active users.
Going back to Tencent’s quarter, their revenues, net profit, and operating margin managed to strike gold. The quarterly figures also managed to overtake most of the forecasts and expectations by their analysts.
Tencent Quarter Breakdown
Tencent’s revenues managed to soar to the 73.53 billion yuan or a whopping $11.5 billion. The tech giant managed to surpass the 71.04 billion yuan expectation. Their current quarterly revenue report is also 48% higher on year-on-year period.
The tech giant’s net profit also managed to reach the 23.29 billion yuan figures in the previous quarter. It also managed to surpass the 17.5 billion yuan expectations and also hitting an impressive 61% year-on-year increase.
Furthermore, the company’ operating margin was also up by a total of 42%. It managed to overtake the 39% expectations and forecasts.
The tech giant’s gaming from all platforms, especially the mobile platform, managed to give their revenue a massive boost. The smartphone gaming revenue also fetched an impressive 68% increase on a year-on-year period to 21.7 billion yuan.
Tencent Games that Dominate the Market
According to their reports, the popularity of smartphone games such as the “Honor of Kings” managed to attract a hefty crowd in the community. The game also managed to tally a double-digit growth on its daily active users.
Their PlayerUnknown’s Battleground or PUBG and Fortnite also managed to shake the gaming industry. Their popularity has extended to platforms such as YouTube and Twitch. The battle royal has been dominating the gaming community ever since the two were introduced.
Fortnite is game developed by Epic Games, which Tencent holds a huge stake in. This title, in particular, has been gaining huge popularity as artists such as Drake has been playing the game. The game’s popularity managed to report a whopping 40 million active users on both of their PC and consoles gamers.
BWorldFinance is your primary source of news in the financial market, technology, and more. Visit bworldfinance.com now and get the latest happenings in the market. Register an account now and begin your investing journey!