Tencent Holdings Ltd. (TCEHY) is reaping the rewards of marrying social media with mobile #gaming.
Tencent is a Chinese internet giant. It just posted its fastest revenue growth in seven years. In addition, they recorded a record profit that surpassed estimates by 35 percent. All of this thanks to its marquee hack-and-slash title Honour of Kings.
Investors bet in 2017 that some of the company’s boldest investments would finally pan out. They were right. Tencent has created one of the world’s most richly valued companies in the process. It tapped the spending power of some 200 million players of Honour of Kings and other phone hits. Their mobile games revenue surpassed that of desktops for the first time. The still-nascent advertising and finance business on messaging app WeChat has also boosted confidence it can eventually become an ad powerhouse. The industry leader is Alibaba Group Holding Ltd. (BABA)