Chinese tech conglomerate Tencent (HKEX: 0700) posted strong revenue growth of 28% for 2020 to reach USD 74.4 billion in sales, as online entertainment, social media, and investments brought in a steady stream of cash. Net income for the year was USD 24.5 billion, a 71% jump from 2019, exceeding previous estimations of USD 20 billion.
Founder and CEO Pony Ma said in the following earnings call that Tencent is actively cooperating with regulators regarding antitrust investigations, and president Martin Lau confirmed that there have been multiple meetings.
The regulatory scrutiny extends to the planned merger of game livestreaming firms Doyu and Huya, both of which it controls. A review is still ongoing. Tencent is also expanding its fintech segment with additional care to avoid the fate of Ant Group.
“The strategic focus for our fintech business is to work closely with regulators and collaborate with industry partners to deliver compliant and inclusive fintech products, while prioritizing risk management over scale,” reads the earnings report.
In the fourth quarter, the online gaming business generated USD 6 billion, contributing around 29% of the group’s total revenue. A quarter of the gaming income came from the international market, thanks to the success of titles like PUBG Mobile, said the earnings report.
Notably, investments have become a new growth engine. The fair value of Tencent’s stakes in listed companies, not including subsidiaries like Tencent Music, totaled USD 187 billion at the end of last year, up 35% since September 30.
WeChat recorded 1.2 billion active accounts at the end of 2020, more than China’s 1 billion internet users.
Read this: China antitrust probes doubled last year in Big Tech crackdown
This article is part of KrASIA’s “Key Stat” series, where KrASIA picks and presents the most significant figures of the day’s technology and business world.
(The fifth paragraph has been updated to reflect the correct percentage of the total revenue.)
