Chinese multinational tech giant Tencent, now a major name in the gaming industry, has reported an impressive upsurge in net profit as well as total revenue.
Tencent is also known for WeChat, an all-in-one social app used by over a billion people in China. It includes messaging, social media, mobile payments, and more.
The company shared its third-quarter financial results yesterday, reporting favorable numbers across the board. Even though its total revenue ($21.3 billion) was slightly below the forecast ($21.33 billion), it was still a 10% increase over the same period last year.
Tencent’s financial report showcases an exceptional performance, evident in its surpassing net profit which exceeded expectations by reaching $5.05 billion. This represents a significant 39% year-on-year increase, underscoring Tencent’s financial strength during the quarter. Furthermore, the non-IFRS net profit reached $6.29 billion.
A key driver of Tencent’s success is its international gaming revenue, which experienced a noteworthy 14% growth, reaching $1.86 billion. This growth, resilient even when considering exchange rate fluctuations, underscores Tencent’s prowess in global expansion and its effective engagement with diverse gaming communities worldwide.
Within its domestic market, Tencent’s gaming revenue also exhibited a 5% growth, reaching $4.57 billion, highlighting its continued stronghold in China.
Tencent’s social software division continues to thrive, boasting 1.336 billion monthly active user accounts on its flagship platforms, WeChat and Weixin. Notably, there’s been a 50% surge in total playtime on the Weixin Video Account, fueled by a burgeoning creator community. However, challenges persist, such as a decrease in monthly active users for QQ.
In the realm of advertising revenue, Tencent reached a record high, experiencing an impressive 20% year-on-year increase, totaling $3.60 billion. With such a robust financial performance, there is a high likelihood that the company’s stock price will see an upward trend.
