High demand for video games during COVID-19 lockdowns buoyed Tencent Holdings’ first-quarter revenue and profits, with blockbuster games PlayerUnknown’s Battlegrounds Mobile and Honor of Kings helping it beat forecasts, reported Reuters.
The Chinese company’s video games business, which generates more than a third of its revenue, saw growth of 31% to RMB 37.30 billion ($5.26 billion) as people sought entertainment at home and used online multiplayer games to spend virtual time with friends.
Its flagship games PlayerUnknown’s Battlegrounds (PUBG) Mobile and Honor of Kings topped mobile games revenue globally in March, analytics firm Sensor Tower said, reinforcing Tencent’s status as the world’s largest gaming firm by sales.
In-game spending on extras such as power-ups and object skins for PUBG Mobile alone surged to $232 million, more than three times the amount the title generated in March 2019. Average revenue per user of Tencent’s mobile games jumped from RMB 62.9 in Q4 to 85.2 in Q1 as a result of limited offline entertainment options, Jason Zhou, an analyst with Guotai Junan Securities, calculated.