Daily Management Review

Tencent adds 89% to revenue in Q3


The growing popularity of computer games during the COVID-19 pandemic enabled Tencent to almost double its profits in the third quarter.

According to the game developer's financial report, its net profit for the three months reached 38.5 billion yuan ($5.8 billion), which is 89% better than last year. It is also significantly better than the forecast of analysts surveyed by Reuters, who expected profit in the area of 30.8 billion yuan.

Revenue as a whole increased by 29% to 125.4 billion yuan ($18.94 billion). At the same time, revenues from online gaming increased most noticeably - by 45% at once. 

The company notes that this is primarily due to the success of mobile games such as Peacekeeper Elite and Honour of Kings. Tencent also noted the return of the online advertising market to pre-crisis levels, while revenues in this segment increased by 16% compared to last year.

Against the backdrop of successful reporting, Chinese developer shares increased by 4.72% at the end of the trading session on Thursday. 

source: reuters.com