Tencent's quarterly revenue was $21 billion. Analysts fear a decline in growth

In the second quarter (ended June 30), Tencent managed to increase all key indicators. During this period, the company earned $21 billion, and revenue from games exceeded $ 6 billion. However, analysts fear that the Chinese giant may suffer from the actions of the authorities to regulate the technology industry.Undawn

General data

Revenue amounted to ¥138.26 billion ($21.29 billion) — an increase of 20% in annual terms.

• This is slightly higher than analysts’ forecasts, which amounted to ¥138.2 billion ($21.28 billion).Profit reached ¥42.6 billion ($6.56 billion) — an increase of 29% in annual terms.
• This figure also turned out to be higher than expectations of 30.8 billion rubles ($4.7 billion).The underestimated forecasts were related to the recent actions of the Chinese government to restrain local technology companies.
• Despite the growth of all major Tencent business metrics, the market has further lowered its forecast for the third quarter.“The company’s growth may slow down even more in the coming quarters, and we are waiting for Tencent to take steps to improve its performance,” said Shawn Yang, managing director of Blue Lotus Capital Advisor.
• Tencent currently employs 94,182 employees, which is 20 thousand more compared to the second quarter of last year.
• The company spends 44.3 billion rubles ($6.8 billion) on salaries.Game Data

Revenue from video games amounted to ¥43 billion ($6.6 billion) — an increase of 12% year-on-year.

• Of this amount, ¥40.8 billion ($6.28 billion) fell on mobile, which is 13% more compared to the same period last year.
• Alchemy Stars, developed by Tourdog Studio, became the most downloaded RPG in Japan in July.
• Light and Night from Aurora Studio became the most downloaded game in China in the genre of simulators by the end of July.
• This title also allowed to increase the share of women among the audience of Tencent games.The Undawn cooperative zombie survival from Lightspeed & Quantum studio has collected over 30 million pre-registrations in China.
• The share of in—game payments from persons under the age of 16 was 3.2%, and from children under the age of 12 – 0.3%.
• “However, these data do not reflect how many minors impersonate adults or use their parents’ accounts,” said analyst Daniel Ahmad.Tencent also continues to work closely with the government to limit playing time among minors.
• For Honor of Kings and Peacekeeper Elite (the Chinese version of PUBG Mobile), the company has set a limit even lower than the norm prescribed in the law. Further changes will affect the rest of the games.