Tencent announces Q2 results with quarterly profits of $4bn
Chinese multinational Tencent has announced its second quarter results.
Highlights of the announcement included the fact that total revenue for the quarter was up 21% year on year, reaching $12.92bn. Quarterly profits of $4bn represented an increase of a third compared to last year.
Ma Huateng, Chairman and CEO of Tencent, said: "During the second quarter, we sustained solid user, revenue and profit growth, and executed on key initiatives amid the challenging business environment. In recent months, we have accelerated our rate of innovation in games, releasing successful new titles in several different genres, introducing new play modes, and extending our popular season passes. In the meantime, we continue to strengthen the Healthy Gameplay System for promoting balanced gameplay for young users.”
Revenue from online games was a driving force behind the results, growing 8% on the back of Tencent’s portfolio of games which includes Honour of Kings, PUBG Mobile, Red Alert OL and Perfect World Mobile. The company hailed the success of its mobile games in comparison to its PC offerings, which saw a decline in revenue.
“We have widened merchant adoption for our mobile payment services, contributing to rapid growth in average transaction and total payment volume,” says Ma. “We have extended and deepened our exclusive relationship with the NBA, the most-watched professional sports league in China, reinforcing our position as a leading digital entertainment platform. Amid the evolving macro-economic and competitive challenges, we continue to invest in enhancing our platforms, services and technologies, for better supporting our users and enterprise customers."