Tencent’s Total Revenue in Q2 Reaches 273.6 Billion Yuan, A 23% Increase Year-on-Year
Today, Tencent released its financial report for the second quarter of 2021, showing its total revenue reaching 273.6 billion yuan ($42.3 billion), up 23% year-on-year. Operating profit was 42.8 billion yuan, an increase of 14% YoY.
Mr. Ma Huateng, Chairman and CEO of Tencent, said, “In the quarter, we enhanced our services and achieved healthy growth rates across our business lines, particularly our Business Services and advertising departments, while our game revenue benefitted from international growth. During the recent Henan floods, Tencent Docs, our cloud-based productivity solution, played a valuable role assisting people who were providing and seeking help, thanks to its collaborative data editing functionality.”
Revenues from VAS increased by 11% to 72.0 billion yuan for the second quarter of 2021 on a year-on-year basis. Games revenues increased by 12% to 43.0 billion yuan, primarily driven by the increase in revenues from games such as Honour of Kings, PUBG Mobile, Valorant, Clash of Clans and Moonlight Blade Mobile.
Tencent said it reinforced the IP of their key titles in China as well as overseas. PUBG Mobile collaborated with internationally recognized brands such as Godzilla vs. Kong, McLaren and Line Friends to create crossover content.
Earlier in August, Honor of Kings was criticized by China’s state media. Tencent said in this financial report that, in August, the company further tightened their game time and spending limits for minors in China, going above and beyond the regulatory requirements.
The company is also cracking down on minors misusing adult accounts while also tracking the transactions of adult accounts on third-party platforms. During the second quarter, players aged under 16 accounted for 2.6% of the company’s game grossing receipts in China. Among which, players aged under 12 accounted for 0.3%.
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Social and other advertising revenues grew by 28% to 19.5 billion yuan, due to increased adoption of Mini Programs as landing pages, more video advertising inventories inside Weixin Moments, as well as revenue growth from the company’s mobile advertising network.
Revenues from FinTech and Business Services increased by 40% to 41.9 billion yuan for the second quarter of 2021 on a year-on-year basis, which primarily reflects an increase in digital payment transactions.