Chinese gaming and social media giant Tencent announced a 65 percent growth in quarterly earnings on Thursday. A reiteration by the management of its focus on compliance as China increases its scrutiny of technological giants.
Tencent, the largest revenue-driven gaming company globally, earned CNY 47,77 trillion in profit (around Rs. 54,180 crores) in the three months to March, above the Refinitiv of CNY 35,45 billion average analysts (roughly Rs. 40,220 crores).
As Chinese authorities have intensified the fight against confidence among internet companies, Tencent’s competitor Alibaba has already penalized $2.75 billion (roughly Rs. 3,120 crores). Last month, Reuters announced that Chinian anti-trust regulations ordered Tencent to give up exclusive music rights and sell some of its musical properties to pay a fine that could be greater than 10 billion CNY (about 10 billion Rs. 11.340 crores).
Along with Alibaba affiliate Ant Group, Tencent is also facing regulatory scrutiny of its non-bank payment business. Speaking on general compliance with regulations, Martin Lau, president of Tencent, told the company that attention was on compliance and risk control. The non-payment financial items were very limited in nature. “It is actually reasonably manageable when we look at the internal analysis and look…to ensure that we conform to the spirit of regulators,” Lau said. Tencent also faces rivalry with ByteDance, TikTok’s proprietors, and the similar Douyin short-film website, making significant progress in the market of video games.
Tencent is also facing regulatory oversight of its non-bank payment enterprise along with the Alibaba affiliate Ant Group. Speaking on general compliance with regulations, Martin Lau, president of Tencent, told the company that attention was on compliance and risk control. The non-payment financial products were very limited in nature. “It is actually reasonably manageable when we look at the internal analysis and look…to ensure that we conform to the spirit of regulators,” Lau said.
In contrast to CNY 134,39 billion industry forecasts, revenues grew 25 percent to CNY 135,3 billion (approximately RR 1.53.460 crores) (roughly Rs. 1,52,440 crores). Tencent said online gaming sales increased by 17%.
Tencent Holdings Ltd. is a Chinese multinational conglomerate corporation with technology, also called Tencent. Its subsidiaries were founded in 1998 and sell different services and products related to the internet, including for entertainment, artificial intelligence, and other technologies worldwide. Its headquarters, Tencent Seafront Towers, is located in the Nanshan District of Shenzhen (also known as Tencent Binhai Mansion).
Tencent is the biggest video game vendor in the country and one of the most profitable commercially. It is one of the leading social media, market capital, and finance firms. It provides social, video, websites, e-commerce, mobile gaming, internet providers, paying systems, and online games for multiplayer. Instant messengers Tencent QQ and WeChat, and one of the biggest online portals, QQ.com, are also offered in China. Moreover, it has 700 million daily customers and 120 million paid customers in Global’s streaming providers (Tencent Music Entertainment).