Tencent’s gaming revenue hit $32.94 billion in 2021, mostly driven by mobile games

Tencent, one of the world’s largest media companies, announced that its revenue from gaming-related businesses grew 9.9% year-over-year in 2021, reaching $32.94 billion. dollars in total revenue.

This growth, as usual, was primarily fueled by the company’s mobile game offerings, which include PUBG-Mobile, brawl starsand clash of clans. And in terms of total revenue, Tencent surpasses Sony, Microsoft, and Nintendo, which brought in $24.9, $16.3, and $15.3 billion, respectively.

Additionally, Tencent mentioned VALORANTS as a key contributor, as the holding company owns developer Riot Games. League of Legends was also ranked among the top three PC games by average monthly users. Tencent also said there are plans to expand the franchise through new games, media like Esotericand sports.

As noted Daniel Ahmad, senior analyst at Niko PartnersTencent’s overseas game revenue from in-house developer titles and games from acquired or partnered studios grew to 26% of its total revenue in 2021. The company aims to increase that figure to 50% as it continues to develop.

Even with those numbers, Tencent’s overall revenue was $22.62 billion for the fourth quarter of 2021, the company’s weakest revenue growth since its IPO in 2004, according to CNBC. This resulted in an underperforming year according to analysts, largely due to China’s regulatory crackdown on gaming, education and other areas throughout 2021.

“2021 was a challenging year, during which we adopted changes and implemented certain measures that strengthened the long-term sustainability of the business, but had the effect of slowing our revenue growth,” Tencent said in a statement provided to CNBC.

That same statement also noted that Tencent expects to “fully digest the impact of minor protective measures” in the second half of 2022.

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