Chinese tech juggernaut Tencent has released it’s Q1 financial results, which ended on March 31st, and show a reported total revenues of RMB 135.5 billion ($21.3 billion), which is in-line with the $20.2 billion reported back in Q1 of 2021.
Additionally, Games account for 32% of Tencent’s $21.3 billion in revenue.
According to GamesIndustry.biz, Tencent profits are down 52% from RMB 23.7 billion ($3.7 billion), operating profit was down 15% year-on-year to RMB 36.5 billion ($5.8 billion). Operating margin decreased from 32% in Q1 2021 to 27%.
In regards to Tencent’s gaming side of the business, the revenue for domestic titles (those in China) sow a slight dip of 1%, attributed to “direct and indirect effects” of measures implemented in China to protect minors from excessive gaming.
Titles such as League of Legends: Wild Rift and Fight of The Golden Spatula saw a rise in revenue, but were offset by the declines in Call of Duty Mobile, among other titles.
In regards to titles outside of the market in China, gaming revenue spiked 4% year-on-year to RMB 10.6 billion ($1.6 billion), largely due to the success of Valorant and Clash of Clans, but Tencent did report a decline in revenue from PUBG Mobile, explaining “as user spending normalized post-COVID.”
Domestic games accounted for 24% of the company’s total quarterly revenues, slightly down from 25% in Q1 2021, with international games accounting for 8%, a rise from 7%.
Read more, including comments from Chief strategy officer James Mitchell, over at GamesIndustry.biz.