The Chinese company Tencent has published a report for the second quarter of 2020 (ended June 30), recording growth in many key indicators. At the same time, the company is not afraid of threats from the United States, explaining this by the low share of the American audience in the company’s total revenues.Key indicators
- total revenue amounted to $16.2 billion and increased by 29% compared to last year’s figures for the same period;Tencent’s profit for the second quarter was $5.83 billion and increased by 24%
- revenues from online games increased by 40% compared to last year and amounted to $5.5 billion.
- Key growth drivers
- mobile projects like Honor of Kings and Peacekeeper Elite helped to increase profits in the Tencent gaming segment;the company notes an increase in the monthly number of active players, which was influenced by the successful launch of new titles;
- two projects had the greatest impact on attracting a new audience: the collectible card game Legends of Runeterra, which allows PC and smartphone users to play with each other, and the new network shooter Valorant, which became the most popular game on Twitch in the second quarter.
- The impact of the pandemic on income
Like many large companies, Tencent has benefited greatly from the effects of the pandemic, as millions of people have started playing games on self-isolation more. The Chinese giant also benefits from the fact that it also manages other online products, including streaming services for watching videos and listening to music.
“During this difficult time, we used our platforms and technologies to help users adapt to new realities using online tools, support enterprises in the transition to online production and make a broad contribution to economic recovery,” commented CEO Ma Huateng.
Forecasts for the next months
Given the growing revenues and profits, Tencent hopes to increase its performance in the coming quarters. At the same time, the company notes that the actions of the Trump administration, which last week launched the Clean Network program, should not affect revenue.
“The American market accounts for less than 2% of total revenue. Given this, advertising revenue in the United States should be below 1% of the company’s total advertising revenue,” says James Mitchell, Director of Development at Tencent.
Also on the topic:
Is there any news? Share it with us, write to firstname.lastname@example.org