Tencent Reports 45% Increase in Online Games Revenues, Nets $5.88B Profit for Q3 2020
Chinese multinational investment holding conglomerate Tencent Holdings released its financial earnings report for the third quarter of 2020. The company generated total net revenues of ¥125.5B RMB ($18.9B USD) in Q3 2020, an increase of 29% from ¥97.2B ($14.7B) in the same period of 2019.
The company reported that its quarterly revenues from online games increased by 45% year-over-year to ¥41.4B ($6.26B), which it attributed primarily to revenue contributions from domestic mobile games such as Peacekeeper Elite and Honor of Kings, which exceeded 100M average daily users in the first ten months of 2020, as well as raised contributions from Tencent’s overseas titles including PUBG Mobile and Clash of Clans.
In total, mobile games revenues were ¥39.2B ($4.92B), parts of which are attributed to the company’s social network business, while PC client games revenues were ¥11.6B ($1.76B) for Q3 2020. Increased revenues from League of Legends and VALORANT offset a decrease in revenues from Dungeon Fighter.
Tencent ended the quarter on a ¥38.9B ($5.88B) net profit, up 85% compared to the same period of 2019. Distributed to shareholders of the company, the profit translated into earnings per share (EPS) of ¥4.06 ($0.61).
Note: The Esports Observer used the exchange rate in effect as of Nov. 12 at a rate of 6.62151 RMB to 1 USD for currency conversions in this article.