Chinese Version of PUBG Mobile and Honor of Kings Lead Tencent into Successful Q2 2019
The company remains one of the biggest players in the mobile games market
Chinese megacorporation Tencent reported second-quarter earnings, which succeeded market expectations but were low on revenue. Still, the company saw a great year-to-year growth due to the key gaming division revival. In case you missed it, the Chinese government has halted the licensing process for games back in March 2018 due to the regulatory reforms. Because of that, Tencent couldn’t release new products and lost much profit.
This quarter, Tencent released 10 new projects compared to only 1 game in Q2 2018.
Naturally, online games’ revenue increased by 8% year-on-year to ¥27.3 billion ($3.9 billion). Mobile games had the largest 26% growth and share in revenue, ¥22.2 billion ($3.2 billion). Income from various projects on Tencent social platforms Tencent was also taken into account.
The flagships of the quarter were Honor of Kings and Peacekeeper Elite (Chinese-only version of PUBG Mobile). The latter already has 50 million daily active Chinese users, which is comparable to its global market.
In July 2019, Tencent launched 3 new games: KartRider Rush, Game of Thrones: Winter is Coming, and Dragon Raja. Their success will be determined by the third-quarter report. However, all of these titles have already reached Top-10 spots in the highest-grossing chart of the Chinese segment of the AppStore.
Things aren’t going so great on PC, though. There, the company saw 11% to $1.7 billion despite launching a new series of League of Legends champions’ skins.
In total, Tencent earned $12.7 billion (+21%) with $3.4 billion of net sales.