Chinese publisher Tencent doubles its profit in just three months, ending on December 31, 2017. One of the causes is its mobile gaming contribution.
Bloomberg reported that Tencent doubles its profit in Q4 2017 with a revenue of US$10.5 billion. This is 51% more than Q4 2016. In terms of net profit, the company reported a whopping US$3.3 billion.
According to Pocketgamer.biz, 56% of the growth was due to the contribution of famous 5v5 game, Honor of Kings which generated US$1.9 billion in 2017 alone. Tencent also invested in big gaming companies such as Riot Games, Supercell, and recently Ubisoft.
The Chinese version of Playerunknown’s Battlegrounds (PUBG) on PC and mobile (which were just recently released for global market) also contributed a significant revenue although no numbers have been shared.
Adding to the PC category, Tencent’s eSports tournaments and live streaming activities were also the reason their profit doubled.
But not only through mobile games, they also gained revenue through services such as subscriptions, sales, payment services, and also social and video advertising.
So, what’s Tencent’s plan for the future? Well, let’s just say that they plan to do bigger things. Tencent intends to bolster its games business by upgrading and adding more features to existing games.
Not just maintaining existing games, they also plan to release new games. Tencent’s ability to create an original IP that’s viable on both PC and mobile can be a very good thing for them. QQ Speed Mobile is a game that has been played by more than 20 million users daily.
What do you think of Tencent’s aggressive approach in the gaming industry? Do you think they will continue the success with new titles? Share your thoughts in the comment section below.