Tencent Holdings Earns Record Profits

Tencent Holdings Earns Record Profits

Tencent Holdings Ltd., a Chinese internet media company, has reportedly posted its fastest revenue growth in seven years and a record profit.This

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Tencent Holdings Ltd., a Chinese internet media company, has reportedly posted its fastest revenue growth in seven years and a record profit.

This may be due to its most popular mobile game, Honour of Kings, as Bloomberg (bloomberg.com) explained.

The company that is known for its WeChat messaging service has recently taken its most successful Honour of Kings beyond the Chinese market to France, Italy, Spain, Germany and the USA.

The game`s popularity helped the company to become one of  China`s two largest corporations, the other represented by internet giant Alibaba Group Holding Ltd.

The analyst of BOC International, Thomas Chong, estimated that Honour of Kings will contribute more than 50 percent of Tencent`s smartphone game revenue. In particular, it reportedly recorded monthly gross revenue of 3 billion yuan ($441 million) in April alone, according to Bloomberg. The game has attracted 200 million players, while WeChat`s success contributed to the company`s raising revenues.

“Mobile games revenue grew fast, benefiting from titles like Honour of Kings.”, commented Li Yujie, an analyst with RHB Research Institute Sdn in Hong Kong, who spoke to Bloomberg.

“Advertising business also topped our expectations and grew at a healthy speed.”, as he added.

Tencent claimed a 70 percent surge in net income to a record 18.2 billion yuan ($2.7 billion) for the three months ended June, exceeding the 13.5 billion-yuan average of estimates,as the report pointed out.

It is to be seen whether Tencent Holding`s revenues will continue to grow, making the company even bigger industry player in the sector.

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