Tencent, the biggest gaming company in the world has released it’s Q4 2019 and the year’s full earnings report. The Chinese giant reported continued growth in its Q4 and full-year financial results, which is expected. Total Q4 2019 generated revenue is RMB 106 billion ($15.2 billion), up 25% year-over-year. The company’s total profit through the year was RMB 377 billion ($54.1 billion), up 21% year-over-year where it was RMB 312.7 billion ($44 billion) in 2018.
Tencent ‘s Q4 online games revenue increased by 25%
Last year’s Q4 online games revenue was RMB 30.3 billion ($4.26 billion) but in Q4 2019 it rose by 25%. Hit mobile titles like Peacekeeper Elite and PUBG Mobile drove revenue growth. Also, Supercell’s titles – Which Tencent owns a majority stake in – like Clash Royal contributed to the growth. In a statement to its shareholders and investors, the company said:
During 2019, we extended our China leadership and made notable progress in our overseas business. Largely due to the success of our games PUBG Mobile and Call of Duty Mobile. As well as the new mode Teamfight Tactics within League of Legends. Our international games revenues more than doubled year-on-year, constituting 23% of our online games revenue in the fourth quarter of 2019. As of the end of 2019, five out of the top ten most-popular smartphone games by daily active users (DAUs) internationally were developed by us.
Tencent’s Q4 2019 net income reached RMB 22.4 billion ($3.14 billion), which is an increase of 60% year-over-year. The company also talked about advertising business in 2019 which was “hurt by delays in broadcasting certain drama series and less advertising activities around NBA basketball games”.
Coronavirus made people spent more time on online entertainment
Due to coronavirus or COVID-19, everyone is in his home which made more people get into online entertainment. Martin Lau, the company’s president said during an earnings call the following:
Our users spent more time on online entertainment, including video and games, during the coronavirus outbreak. But we shifted more resources and people…to public service sectors, such as online health care and online education during the pandemic.