League of Legends Parent Company Tencent Bags $1 Billion Profit in Last Quarter
Tencent, the Chinese parent company that owns Riot Games, half of Epic Games as well as Activision, have reported a $2.99 billion in revenues from its products, with $1.05 billion being profit, a 60% raise compared to last year’s profit.
Tencent is known to operate China’s widely used app-distribution and social portals; WeChat and Weixin social networks which have more than 396 million active users per month, their QQ and Qzone chat and app-distribution networks have over 848 million active users.
Chief Executive Ma Huateng stated that the company expanded its mobile ecosystem providing new services to users which increased their financial gains whilst benefitting their business partners.
Their smartphone games business lead the markets, earning the company 29% year-on-year growth whilst the company continued to fund their investments in several strategic initiatives.
Majority of Tencent’s revenues come from its online-game business, earning $1.67 billion from consumer spending and the smartphones games installed via their QQ services.
Last year, it was estimated that gamers spend around $13 billion on games in China out of which $8.7 billion is from PC’s online games like League of Legends. Tencent is currently working with Activision on Call of Duty: Online, a free-to-play version of the famous franchise which is expected to release in China later this year.