Tencent shows impressive growth in 2016 with a staggering $21 billion in revenues generated

Tencent shows impressive growth in 2016 with a staggering $21 billion in revenues generated

Tencent (HKG:0700) has posted its Q4 FY16 financials for the three months ending December 31st 2016.

For the year overall, Tencent generated an impressive $21.9 billion, an increase of 48% year-on-year. Profits jumped up 42% year-on-year to $5.9 billion.

Revenues also grew to $6.3 billion for its fourth quarter, up 44% year-on-year. Quarterly profits meanwhile increased 46% year-on-year to $1.5 billion.

Breaking this down further, the company generated $2.7 billion from its online games revenue in Q4. Its mobile games alone generated $1.6 billion in revenues for the quarter, an increase of 51% year-on-year.

Honour amongst kings

Tencent particularly referred to Honor of Kings, YuLong Mobile and Naruto Mobile as its main sources of game revenues for the quarter. Honor of Kings alone has over 50 million MAUs as of January 2017.

"Looking ahead, we will seek to deliver superior experiences to our users and to create business opportunities for our ecosystem partners through the further implementation of our Connection strategy," said Ma Huateng, Chairman and CEO of Tencent.

"We will also invest heavily in cutting edge technologies such as security, cloud, big data and AI so as to position us for the next wave of growth."

One of Tencent's biggest investments in 2016 was its acquisition of Clash of Clans developer Supercell. The company spent $8.6 billion acquiring 73% of shares in the developer.

Deputy Editor

Ric has written for for as long as he can remember, and is now Deputy Editor. He likes trains.


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