Tencent earns $20.6 billion in Q1, cloud and fintech profits surge 65%
Published 21 May 2021
Chinese tech giant Tencent Holdings has earned $20.6 billion (135.3 billion Yuan) in revenue this year, with much of its profits from a near 65% surge in cloud, gaming, and fintech businesses.
The company released its latest financial figures for the first quarter of 2021, and said increased revenue represents a 25% growth year-on-year.
Much of Tencent’s Q1 revenue came from two streams: one, its cloud and fintech businesses, which reported a 47% surge to $6.06 billion (39 billion Yuan); and two, its value added services (VAS) including mobile games, subscription-based entertainment platforms, and WeChat, one of the largest social messaging apps in China — VAS revenue rose 16% year-on-year to $11.3 billion (72.4 billion Yuan).
CEO Ma Huateng commented that Tencent will continue to enhance product and service offerings in areas including business services and enterprise software, high-production-value games, and short-form videos.
“As we look into the future, we see expanding opportunities in the various verticals in which we operate, enabled by technology innovation and increasing acceptance of digital solutions among users and businesses,” he added.
Tencent’s rapid expansion in East Asia
Tencent’s substantial growth in cloud and fintech illustrate the company’s commitment to the expansion of its services both domestically and beyond. In February, its video-sharing mobile app Kuaishou went public on the Hong Kong stock exchange. Kuaishou, up-and-coming in China, is widely considered to be the main competitor of Douyin, China’s version of TikTok.
Tencent’s cloud computing arm, Tencent Cloud, has also recently signed a memorandum of agreement (MoU) with the metropolitan government of Seoul, South Korea to develop an app for Chinese tourists.