Tencent to step up global games expansion after posting 13 per cent decline in quarterly profit
- Third-quarter revenue increased 21 per cent to 97.2 billion yuan, but it was still below analysts’ estimate of 99 billion yuan
Internet giant Tencent Holdings aims to step up international expansion through its growing video games empire, which could receive a boost with the roll-out of ultra-fast 5G mobile services that enable more advanced applications.
Tencent, which already runs the world’s biggest video games business by revenue, revealed plans to strengthen its presence in international markets, after the Hong Kong-listed company reported on Wednesday lower-than-expected earnings in the third quarter.
Martin Lau Chi-ping, president of Tencent, said at a conference call with analysts after the market closed that the company will sharpen its focus “on incubating our own ideas that are suitable for global audiences and broadening our partnership with international IP (intellectual property) owners”.
In addition, Tencent will pursue localisation of video games for multiple regional markets, Lau said. While the company has succeeded in pioneering this strategy, he said international markets still represent a small percentage of its video games business.
