Tencent Holdings – Over USD 10 billion profit achieved for year 2017

Tencent Holdings Limited, the largest IT company in China, recently announced its financial results for the year of 2017. While you may have known its subsidiary Tencent Games, the company is also behind China’s top chat app (WeChat), online messenger (QQ Messenger), hundreds of IT services and more. It is also the majority shareholder of Epic Games (make of Unreal Engine), owner of Supercell (Clash of Clans) and the financial force behind Riot Games (League of Legends). Here is a quick look of how Tencent performed last year.

1. Total revenues for the year ended December 31, 2017 were RMB 237,760 million (USD 36.4 billion), an increase of 56% over the year ended December 31, 2016.

2. Operating profit was RMB 90,302 million (USD 13.8 billion), an increase of 61% c. Operating margin was 38%, up from 37% last year.

3. Profit for the year was RMB 72,471 million (USD 11.1 billion), an increase of 75% YoY. Net margin increased to 30% from 27% last year.

4. The Chinese media reported that revenues for PC gaming increased 13% Year on Year (YoY) to RMB 12,800 million (USD 2.024 billion). Major contributors include Dungeon & Fighters and League of Legends.

5. The Chinese media reported that revenues for mobile gaming increased 59% Year on Year (YoY) to RMB 16,900 million (USD 2.673 billion). Major contributors include Honor of Kings (also known as Arena of Valor) and Kings of Chaos.