Published , by TJ Denzer
Published , by TJ Denzer
Throughout the world right now, Tencent has proven to be a juggernaut of gaming. The Chinese gaming company has investment both at home and abroad in competitive, mobile, and various online gaming markets that have allowed it to become an incredible force in the industry. The company just posted its Q2 2021 earnings. However, Tencent is also still at the mercy of decisions by its own government and the effects of that are threatening to show through the rest of the fiscal year as China cracks down hard on gaming and online industries within its borders.
Tencent shared its Q2 2021 earnings report on its investor relations website on August 19, 2021. It was a strong quarter for the company with boasts of a 20 percent climb in revenue and an over 29 percent increase in profit over Q1 totaling 42.6 billion yuan (about $6.56 billion USD) to beat expectations. For a company as large as Tencent, this should be considered very big news, but Tencent was also involved in various Chinese regulatory crackdowns over the course of recent months.
Tencent had a merger fall through due to regulation that would have seen two of the country’s largest streaming platforms come together. The company also saw its stock slip when, during ongoing regulatory crackdowns, Chinese media referred to online gaming as “spiritual opium,” teasing that further regulation may be coming.
Despite this, Tencent has expressed confidence that it can comply with ongoing shifts in mood and regulation to continue business, according to CNBC. At the same time, the company also cautions that these ongoing regulatory efforts may affect the company’s business and operation as it works to remain inside the lines of regulation that have seen companies like rideshare app Didi Chuxing take major hits over cybersecurity crackdowns.
While Tencent’s Q2 2021 remained impressive and the company will continue to be an undeniable force in the global gaming industry, it will remain to be seen what effects ongoing Chinese government moods and regulatory measures on gaming have on Tencent going forward. For more reporting on the recent fiscal quarter, stay tuned here at Shacknews as further companies continue to report.