Tencent sees Q2 revenue dip due to "post-pandemic digestion period"
International games division saw a 1% revenue decrease year-over-year; V Rising and Valorant said to have strong performances
Chinese giant Tencent released its financial earnings for the period ending on June 30, reporting declines in revenue among its international and domestic game divisions.
By the numbers:
- Total revenue was RMB 134.0 billion ($20 billion), a decrease of 3% year-over-year
- Profit for the period was RMB 19.2 billion ($3 billion), a decrease of 55% year-on-year
- International Games revenue was RMB 10.7 billion ($ 1.6 billion), down 1% year-over-year
- Domestic Games revenue decreased 1% to RMB 31.8 billion ($4.7 billion), a decrease of 1% year-on-year
International Games:
The firm explained its international games revenue decline by saying the entire industry "experienced a post-pandemic digestion period" as players started to resume outdoor and offline pursuits.
While its titles PUBG Mobile and Brawl Stars saw decreases in their earnings, Valorant grew revenues and posted a record-high for monthly active users during the quarter.
Additionally, Tencent noted that V Rising, which was released in Early Access during May, brought in "incremental revenues" as it sold 2 million copies.
Domestic Games:
Tencent said that its domestic games also experienced a decline by a post-pandemic transitional period.
The Chinese games market saw fewer AAA title releases, lower consumer spending, and continued restrictions on gaming by minors.
The firm did note that its titles Honor of Kings and Peacekeeper Elite were the two top earning games during the quarter.
In recent business news, the firm announced a partnership with Logitech to create a handheld cloud gaming console, which is slated to release later this year.