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Sales for the world's largest video game company and operator of
the WeChat messaging platform came in at 154.6 billion yuan
($21.4 billion) - in line with market forecasts - for the three
months to end September, its third straight quarter of revenue
growth.
Last year was one of the toughest years for Chinese video game
companies after a regulatory crackdown that began in 2021 led to
an eight month-long freeze in licences for new games and more
restrictions on playing time for minors. Tencent ended up
posting its first-ever annual revenue decline.
This year has been much better for the industry after regulators
began resuming granting game licences.
Tencent's domestic games revenue for the quarter grew 5%, driven
by titles such as the multiplayer role-playing game "Lost Ark"
and shooting game "Valorant", developed by Riot Games - both of
which Tencent recently launched for the first time in China.
In August, the video games sector raked in combined revenue of
29.2 billion yuan, the highest level in at least 20 months,
according to CNG, a government-backed industry data firm.
Tencent's online advertising business reported a 20% jump in
revenue thanks to strong demand for advertising in its video
content.
Its fintech business, its second-largest business unit, reported
a 16% climb in sales thanks to an improved performance from
wealth management services and online transactions.
Net profit declined 9% to 36.1 billion yuan from a year ago when
the company had a strong quarter after divesting stakes in
portfolio companies such as Sea.
($1 = 7.2405 Chinese yuan)
(Reporting by Josh Ye; Editing by Miyoung Kim and Edwina Gibbs)
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