Covid-19 has given Tencent's gaming revenue a boost, says GlobalData
Following today's news on Tencent's first quarter 2020 earnings results
Rupantar Guha, Senior Analyst for Thematic Research at GlobalData, a leading data and analytics company, offers his view :
"Tencent's gaming division is thriving despite the Covid-19 crisis, posting impressive revenue growth in Q1 2020. Tencent sits at the top of GlobalData's gaming software thematic scorecard, ahead of 36 companies in the gaming software market.
Tencent is one of only seven companies in this ranking with a rating of 4 out of 5 for the coronavirus theme, which implies that the company is in a strong position to cope with the effects of Covid-19. In particular, it publishes several of the most popular mobile games. In Q1 2020, Tencent's smartphone games revenue grew by 64% year-on-year, driven by titles such as Honor of Kings and Peacekeeper Elite (the Chinese mobile version of PlayerUnknown's Battlegrounds).
Tencent's gaming revenue is expected to continue to grow in 2020 as the company launches new titles. However, it will struggle to maintain its current rate of growth as lockdowns are relaxed and people have less free time for gaming. A major area of focus for Tencent will be its wholly-owned subsidiary, Riot Games (the maker of League of Legends). Riot Games' new titles, including League of Legends : Wild Rift, Valorant, and Legends of Runeterra, will help Tencent challenge Activision Blizzard's titles like Call of Duty, Overwatch, and Hearthstone."