Tencent's Gaming Recovery Boosts Q3 Revenue 8% Despite Fintech Struggles

The Chinese tech conglomerate Tencent Holdings revealed an 8% growth in revenues for the third quarter this Wednesday owing to the sustained performance of the company’s gaming segment while demand for its fintech branches eased due to economic headwinds in China.

Analyzing the newly released statistical data from LSEG, it is also noted that Tencent, the biggest gaming corporation in the world and owner of the WeChat service, received 1,952.21 billion rupees ($23.14 billion) in revenues in the third quarter which, interestingly, corresponds with the analysts’ average forecast of 1.962 trillion rupees. Domestic gaming revenue bounced back increasing by 14% to 436.27 billion rupees, additional to the 9% increase of the previous quarter setting up two successive quarters of growth after previously falling. International gaming revenue also shot up by 9% to 169.59 billion rupees. The substantial growth was attributed to the popularity of ‘Dungeon & Fighter Mobile’ that was released in May as well as the new shooting game ‘Delta Force’ which was unveiled in September.

Furthermore, the much-awaited mobile game “Black Myth: Wukong,” which is based on ‘The Journey to the West’ and has skyrocketed in popularity across the globe since its August launch, has also boosted the investment portfolio of Tencent considering that it has a stake in the company that is developing the game. 

On the contrary, quiet rise was noticed in Tencent’s fintech and cloud service sections, which rose by 2%, to 621.07 b rupees, with the payment segment being adversely impacted by less disposable income of the consumers in China whilst the marketing services segment, previously known as online advertising, registered a revenue rise of 17% to 350.89 billion rupees.