TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentral TechCentral
    NEWSLETTER
    • News

      Saboteurs threaten South Africa’s power supply

      20 May 2022

      Prosus to sell Russia’s Avito

      20 May 2022

      Curro pilots artificial intelligence for learning in its schools

      20 May 2022

      Dark weekend lies ahead thanks to you know who

      20 May 2022

      CSIR develops app to help kids learn to read

      20 May 2022
    • World

      Chip giant ASML places big bets on a tiny future

      20 May 2022

      Musk moves to soothe investor fears over Tesla

      20 May 2022

      Apple is almost ready to show off its mixed-reality headset

      20 May 2022

      TikTok plans big push into gaming

      19 May 2022

      Musk says he will vote Republican, calls ESG a ‘scam’

      19 May 2022
    • In-depth

      Elon Musk is becoming like Henry Ford – and that’s not a good thing

      17 May 2022

      Stablecoins wend wobbly way into the unknown

      17 May 2022

      The standard model of particle physics may be broken

      11 May 2022

      Meet Jared Birchall, Elon Musk’s personal ‘fixer’

      6 May 2022

      Twitter takeover was brash and fast, with Musk calling the shots

      26 April 2022
    • Podcasts

      Dean Broadley on why product design at Yoco is an evolving art

      18 May 2022

      Everything PC S01E02 – ‘AMD: Ryzen from the dead – part 2’

      17 May 2022

      Everything PC S01E01 – ‘AMD: Ryzen from the dead – part 1’

      10 May 2022

      Llew Claasen on how exchange controls are harming SA tech start-ups

      2 May 2022

      The inside scoop on OVEX’s big expansion plans

      20 April 2022
    • Opinion

      A proposed solution to crypto’s stablecoin problem

      19 May 2022

      From spectrum to roads, why fixing SA’s problems is an uphill battle

      19 April 2022

      How AI is being deployed in the fight against cybercriminals

      8 April 2022

      Cash is still king … but not for much longer

      31 March 2022

      Icasa on the role of TV white spaces and dynamic spectrum access

      31 March 2022
    • Company Hubs
      • 1-grid
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Tarsus on Demand
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»Sections»Investment»Tencent sustains Covid-era boom as revenue soars 25%

    Tencent sustains Covid-era boom as revenue soars 25%

    Investment By Agency Staff20 May 2021
    Facebook Twitter LinkedIn WhatsApp Telegram Email

    Tencent Holdings reported a 25% gain in quarterly revenue as China’s largest company sustained a boom in gaming and cloud that began during the Covid-19 pandemic.

    Revenue climbed to C¥135.3-billion (US$21-billion) in the three months ended March, compared to the average C¥133.8-billion of estimates. Net income came in at C¥47.8-billion, versus ¥28.9-billion a year earlier.

    The results affirmed the resilience of the world’s largest game publishing business as the pandemic recedes.

    Tencent has shed roughly $200-billion in market value since its January peak, part of a broader Chinese tech selloff

    Tencent has shed roughly $200-billion in market value since its January peak, part of a broader Chinese tech selloff. But Pony Ma’s company has largely escaped Beijing’s antitrust crackdown for now — despite its ubiquitous WeChat app offering unrivalled insights into all aspects of Chinese life and a commanding lead in gaming, music and social media markets.

    Potential fallout

    Investors haven’t fully dismissed the potential fallout for Tencent’s online juggernaut. Rivals like ByteDance argue that WeChat is locking users inside its ecosystem by blocking links to external services. Portfolio start-ups like Yuanfudao and Shixianghui have been penalised for unfair price tactics and other anticompetitive behaviour. Its music spin-off faces heightened scrutiny over exclusive dealings with record labels. And Tencent’s fintech arm — the closest comparison to Jack Ma’s Ant Group in China — is said to be the next in line for increased supervision.

    Executives have sought to assuage investor concerns, saying Tencent has always been cautious with fintech regulations and will stick with its normal practice of acquiring minority stakes in start-ups. “Compliance is our lifeline,” Tencent president Martin Lau told investors in March.

    For now, gaming and social content remain Tencent’s biggest and steadiest cash cows. It announced a pipeline of more than 40 new mobile and PC titles during its annual game showcase on Sunday, including those adapted from familiar content like Japanese manga series One Piece and Digimon. Last month, the Shenzhen-based company folded its mini-video app, video streaming platform and mobile store into a single business unit, in a bid to pull together resources to build a Marvel-like franchise.

    Longer term, Tencent’s online advertising business could take a hit from macroeconomic and regulatory uncertainties.

    “Possible cautious ad budget spending by apparel brands and online education providers plus uncertainty on broadcasting timing for certain variety shows and dramas could weigh on” ad revenue growth into the second quarter and second half, Citigroup analysts led by Alicia Yap wrote in a note last month.  — Reported by Zheping Huang, (c) 2021 Bloomberg LP

    Now read: Tencent is a R600-billion headache for its biggest backer

    Alibaba Pony Ma Tencent top
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticleCrypto ‘recipe for disaster’ keeps bitcoin, ether under pressure
    Next Article Microsoft is killing off Internet Explorer for good

    Related Posts

    Saboteurs threaten South Africa’s power supply

    20 May 2022

    Prosus to sell Russia’s Avito

    20 May 2022

    Curro pilots artificial intelligence for learning in its schools

    20 May 2022
    Add A Comment

    Comments are closed.

    Promoted

    Fast-rising fintech Bankingly closes $11m investment round

    20 May 2022

    Creating an effective employer value proposition for the new era of work

    20 May 2022

    Why fibre is the new utility – and what it means for South Africa

    19 May 2022
    Opinion

    A proposed solution to crypto’s stablecoin problem

    19 May 2022

    From spectrum to roads, why fixing SA’s problems is an uphill battle

    19 April 2022

    How AI is being deployed in the fight against cybercriminals

    8 April 2022

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2022 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.