Tencent’s Q3 Revenue Increases by 13% Year-on-Year

Chinese telecom giant Tencent released its third quarter financial report on Wednesday, showing that its revenue in the third quarter was 142.368 billion yuan ($22 billion), a year-on-year increase of 13%, while its profit attributable to shareholders company was 31.8 billion yuan, down 2% year-on-year.

In the third quarter of 2021, Tencent‘s gross profit reached 62.75 billion yuan, a year-on-year increase of 11%. Its net profit hit 39.51 billion yuan, a year-on-year increase of 3%. However, its non-IFRS net profit was 31.751 billion yuan, down 2% year-on-year.

As Chinese authorities have further strengthened anti-addiction measures for minors, the minors’ game market and the proportion of minor’s games gross receipts have greatly shrunk.

The financial report shows that in terms of gross domestic game receipts, minors accounted for only 1.1% in September, a significant decline from 4.8% in September 2020. Minors accounted for 0.7% of Tencent‘s domestic gaming time spent in September, another significant decline from 6.4% the previous year.

In the financial report of the fourth quarter last year, minors under 18 years old accounted for 6.0% of the gross gamereceipts, among which minors under 16 years old accounted for 3.2%.

Tencent‘s domestic games revenues grew by 5% year-on-year to 33.6 billion yuan, driven by games such as Honor of Kings, Call of Duty Mobile, and Moonlight Blade Mobile. International Games revenues grew by 20% year-on-year to 11.3 billion yuan, due to robust performance of games including Valorant and Clash of Clans.

Ma Huateng, Chairman and CEO of Tencent, said: “In the domestic games market, our efforts in fully complying with new regulations significantly reduced minors’ game time, the amount they spent and helped foster a healthier gameplay environment overall. We also invested in key strategic areas, as well as in frontier technologies, along with making new commitments in common prosperity initiatives.”

In addition, in terms of communication and social services, the financial report shows that the number of combined MAUs of Weixin and WeChat reached 1.263 billion in the third quarter, a year-on-year increase of 4.1%. The mobile device MAUs of QQ were 574 million, down 7.1% year-on-year.

SEE ALSO: Amid Rumors Tencent Will Implement “965” Workweek, Many Employees Haven’t Been Notified or Prefer Flexible Schedule

As of September 30, 2021, Tencent had 107,348 employees, and the total salary cost of the group for the three months ended September 30, 2021 was 25.963 billion yuan. Therefore, the average monthly salary of Tencent employees in the third quarter was 80,600 yuan, compared with 76,100 yuan in the same period last year.