Chinese gaming and social media giant Tencent Holdings Ltd’s quarterly profit on Thursday rose by 65% due to the surge in the users for its games within China and internationally. Tencent is the world’s largest gaming firm by revenue, earned a profit of 47.77 billion yuan ($7.42 billion) for the three months through March, which is much higher than the average analyst estimates published by Refinitiv. Revenue of Tencent rose 25% to 135.3 billion yuan, versus market expectations of 134.39 billion yuan. Tencent said that their revenue grew by 17% from online games.
As per the report by Reuter last month Tencent was asked to pay a fine by Chinese anti-trust regulators that could exceed 10 billion yuan to give up exclusive music rights and sell some of its music assets. Tencent has yet not said anything on this matter. Tencent Music, which is a music streaming company owned by Tencent, said earlier this week that they are being subjected to increased scrutiny from Chinese regulators. Tencent is also facing huge competition from ByteDance, the owner of TikTok, and from Douyin which have made a massive entrance into the video games business. Tencent earns 32% of its revenue from video games. Last week Tencent unveiled more than 60 new titles at its annual video gaming. Tencent is also eyeing to launch a mobile version of its League of Legends game, and also a Pokemon game in partnership with Nintendo at the end of this year.
