Games account for 32% of Tencent's $2.13 billion Q1 revenues
James Batchelor
Editor-in-Chief
Friday 20th May 2022
Tencent
At a glance:
Chinese internet giant Tencent has released its financial results for the first quarter of the year, with revenues flat but profits declining.
For the three months ended March 31, 2021, the company reported total revenues of RMB 135.5 billion ($21.3 billion) -- roughly in line with the RMB 135.3 billion ($20.2 billion) reported in Q1 2021.
The company first detailed results on an non-IFRS [International Financial Reporting Standards] basis in order to show core earnings without one-time expenses or non-cash items skewing the figures.
On this basis, operating profit was down 15% year-on-year to RMB 36.5 billion ($5.8 billion. Operating margin decreased from 32% in Q1 2021 to 27%.
Profit was reported as RMB 26.3 billion ($4.1 billion), down 24% year-on-year, with the net margin falling from 26% to 19%.
On an IFRS basis, these figures were a little different.
Operating profit dropped 34% to RMB 37.2 billion ($5.9 billion), with operating margin down from 42% to 27%.
Profit fell 52% from RMB 23.7 billion ($3.7 billion), with net margin at 18%, down from 36%.
Looking specifically at its video games business, revenues from domestic titles (i.e. those in Tencent's home market of China) dip ever so slightly by 1% to RMB 33 billion ($4.9 billion).
This was attributed to the "direct and indirect effects" of measures implemented in China to protect minors from excessive gaming. Last year, the Chinese government introduced spending caps and ruled that young people could only play online games for three hours a week (one hour per day, Friday to Sunday).
Tencent saw a surge in revenues for newly launched games League of Legends: Wild Rift and Fight of The Golden Spatula, but
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