Tencent’s revenue jumped 13% to US$22 billion in the third quarter of 2021, which was the Chinese tech giant’s slowest pace of topline growth since it went public in 2004.
China’s crackdown on local tech firms may have impeded revenue growth, which were slightly below Refinitiv estimates. Besides imposing other regulations, Beijing put a limit on the time children in the country could spend playing games. Since August, the government has also not approved any new games, Reuters reported.
Photo credit: Tencent
The company said minors now account for only 0.7% of time spent playing its domestic titles in September, down from 6.4% from the same month last year. The firm said minors made up 1.1% of domestic games grossing receipts in September, down from 4.8% last year.
Tencent’s net profit ticked up 3% to US$6.18 billion in the third quarter over the same quarter last year. However, its non-IFRS profit declined 2% in the quarter.
The company said revenue from domestic mobile games grew 5% in Q3 2021, driven by titles such as Call of Duty Mobile, Moonlight Blade Mobile, and Honor of Kings. International games fared better, with revenue growing 20% in the quarter, thanks to Valorant and Clash of Clans.
Currency converted from Chinese yuan to US dollar: US$1 = 6.39 yuan
Editing by Collin Furtado
(And yes, we’re serious about ethics and transparency. More information here.)
Stay updated on the go with our mobile app.
Get latest insights with smoother, more personalized experience through TIA mobile app.
