Chinese game and social media giant Tencent announced on Thursday that its quarterly profit increased by 89%. Its sensational game “Honor of Kings” and solid advertising business helped it exceed expectations and increase its price. In terms of revenue, the world’s largest gaming company has benefited from the healthy growth of paying video game users in China and international markets.

Its flagship game “King of Honor” reported that daily active users in the first 10 months of 2020 reached a record 100 million.

In the three months to the end of September, Tencent achieved a profit of 38.5 billion yuan (approximately 434 billion rupees). According to data from Refinitiv, this figure exceeded the 30.81 billion yuan (about 34,700 crore) that analysts had expected. Revenue increased by 29% to 125.4 billion yuan (approximately 143.1 billion rupees).

The Chinese group has a large number of new games waiting to be released, including the release of the mobile version of “League of Legends” that was recently tested in Asia.

After the COVID-19 outbreak, the company’s advertising activities also returned to normal levels, with rapid growth in areas such as education, Internet services and e-commerce platforms.

Its closed up 4.72%, while the Hang Seng Index fell 0.22%.

On Wednesday’s celebration of the 22nd anniversary of Tencent’s birthday, the price rebounded from a 7% decline because investors dumped shares of Chinese technology companies after the release of the draft regulations, which also erased the stocks of Chinese technology companies, including Alibaba. Hundreds of billions of dollars from some tech giants.

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Tencent stated that its revenue from cloud and other business services (potential future growth engines) has been affected by the continuing of the pandemic, such as delays in project deployment and the signing of new contracts.

Tencent said: “Therefore, the year-on-year revenue growth rate is lower than the previous quarters. We expect this to be temporary.”

© Thomson Reuters 2020

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