Business

PC and Mobile Revenue Decreases for Tencent During Q2 2018

By Muhammad Bilal Syahrir

The total number of users who massively play Tencent’s free to play games (which includes PUBG Mobile) also affected the monetization per user.


Despite the increase in the total number of users, revenue decreases for Tencent during Q2.

Tencent has released its newest financial report for Q2 2018. The report shows revenue decrease in PC and mobile. Tencent reports revenues of 73.6 billion yuan (~US$10.6 billion), a year-on-year increase of 30%.

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The first six months of revenue shows a 39% growth year-on-year to 147.2 billion yuan (~US$21.2 billion).  Surprisingly, PC games revenue only hits 12.9 billion yuan (~US$1.86 billion), down to 5% year-on-year and 8% lower than the previous quarter.

One of the reasons for this is due to a low spending consumer season plus the fact that Tencent is focusing on mobile games at the moment. It’s not surprising because, in this sector, it generated 17.6 billion yuan (~US$2.53 billion) over the quarter.

Revenue Decreases for Tencent

This is a total of 25% total revenues. However, compared to the previous three-month period, mobile game revenue has dropped by 19%.

The report also shows the total number of daily active users (DAU). Compared to last year, Tencent’s active users on mobile are doubled this year.

However, the total number of users who massively play Tencent’s free to play games (which includes PUBG Mobile) also affected the monetization per user. PUBG Mobile had 14 million DAUs (not including in Japan and Korea) and generated over $20 million in July outside China.

According to Sensor Tower, PUBG Mobile was so successful in its early stages of release with a revenue of US$50 million. It even jumped from the 68th to the 33rd on the global player spending chart for mobile games for July 2018.

Tencent’s Value Drops US$78 Billion as It Faces Worst Margin Ever

Despite the aggressive investment, Tencen'svalue drops for a total of US$78 billion. The number also sees it being the worst margin since 2003. But let's not jump to any conclusions yet.

On the other hand, Arena of Valor had more than 13 million DAUs and generated over US$30 million per month outside China for the first half.

Although Tencent’s revenue for mobile has dropped, we feel that they will overcome this in the near future.

Edited by Devi

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