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Source: Olga e Alexia, Shutterstock
Summary
- China is keeping a strict eye on its big tech giants
- Tencent founder Ma Huateng is reportedly facing anti-trust scrutiny
Despite the increased scrutiny on tech companies by the Chinese government, internet advertising giant Tencent Holdings Ltd. (TCEHY:US, OTCMKTS: TCEHY) has managed to sail through the rough weather and reported a 175 per cent rise in profit for the fourth-quarter of 2020.
After Alibaba Group's boss Jack Ma, Tencent's founder and CEO Ma Huateng (popularly known as Pony Ma) is reportedly facing anti-trust scrutiny for not complying with the country's rules. Earlier this month, the Tencent chief had met some anti-trust watchdog officials for discussing compliance at his group.
China is keeping a strict eye on its big tech giants, which rank among the worlds' best companies. The communist nation wants to keep a check on these companies as it believes that they are responsible for creating a market environment that suppresses competition, misuses consumer data and violates the privacy rights of the consumers.
Gaming Remains Big Source Of Revenue For Tencent
Source: Pixabay
After the COVID-19 pandemic, the video game market has attracted the attention of millions of gamers across the world.
Due to social distancing measures and lockdown situation, the online gaming industry boomed and Tencent successfully capitalized on the opportunity. In 2020, the gaming department remained a major source of revenue and grew 36 per cent to 156 billion yuan.
Mr Huateng reportedly said that while 2020 was a year of tough challenges, the company's solid results indicate that our focus on user value and innovation is yielded positive results for the company.
Here's All You Need To Know About Tencent Financial Results:The company reported an operating profit (on an IFRS basis) of US$ 9765 million in Q4 2020, up by 123 per cent year-over-year (YoY).
- For the same period, Tencent's profit was US$ 9,099 million, an increase of 165 per cent YoY. The profit for the full year was 159.8 billion yuan, up by 71 per cent YoY.
- The company's total revenue in 2020 was 482.1 billion yuan, up by 28 per cent YoY.
Tencent run an internet advertising unit, video game business, and offers internet-related services and products across the world and in China.
The company’s market cap is over US$ 756 billion and offers 25.42 per cent return on equity. The stock grew 74.3 per cent in a year and 11 per cent year-to-date.
