HIGH demand for video games during COVID-19 lockdowns buoyed Tencent Holdings’ first-quarter revenue and profits, with blockbuster games PlayerUnknown’s Battlegrounds Mobile and Honor of Kings helping it beat forecasts.
The Shenzhen-based company’s video games business, which generates more than a third of its revenue, saw growth of 31 percent to 37.30 billion yuan (US$5.26 billion) as people sought entertainment at home and used online multiplayer games to spend virtual time with friends.
Tencent’s overall revenue jumped 26 percent to 108.07 billion yuan (US$15.24 billion), while net profit rose 6 percent to 28.90 billion yuan for the three months to the end of March, with both ahead of the average analysts estimate, Refinitiv data showed.
The company said its group online advertising revenue rose 32 percent, with gaming and education-related ads on WeChat and its other apps helping it to buck a broader advertising downturn as the global economy reels from the pandemic.