Back in mid-November of 2019, we reported that Tencent wanted to increase its presence and reach around the globe. However, to do this new initiative, Tencent wants to strengthen its connections in Europe and the U.S. to secure a proper footing in this new era. With that said, a new report covers Tencent’s full-year financial results and reveals that the Chinese mega-corporation is benefiting from this global partnership initiative.
It is said that the Chinese giant has seen profits rise once again as of the last quarter and for all of 2019. Additionally, website gamesindustry.biz reports that Tencent is seeing continued growth in its Q4 and full-year financial results thanks to its “continued international partnerships and reach.”
If you want the statistics and year-over-year (YoY) numbers, the publication site has the figures as seen below:
“For Q4 2019, Tencent brought in total revenue of RMB 106 billion ($15.2 billion), up 25% year-over-year, and operating profit of RMB 30.3 billion ($4.34 billion), up 35% year-over-year.”
If you want context behind this growth, the website notes that Tencent’s online games revenue rose 20% YoY to $7.42 billion. This revenue growth comes from mobile games like Peacekeeper Elite, PUBG Mobile, and content from Supercell titles — a company that Tencent owns 84.3% of stake in as of this writing.
Furthermore, the website notes that Tencent will continue to focus on “external and overseas partnerships,” given that the company’s international games revenue has doubled YoY.
The website concludes by highlighting Tencent’s total profit, which reached $54.1 billion, up 21% YoY, and its operating profit now sits at $16.4 million — up 24% YoY.
Aside from Tencent wanting to reach the entire world through video games, the Chinese mega-giant is looking to go West and other places outside of China by investing in payment services and smart retail overseas. This is after the company saw an increase in revenue thanks to WeChat’s mini-app ecosystem.
So what does this all mean? Well, it means that Tencent’s plan to go global (both in video games and payment plans) is off to an excellent start.
