Tencent Advances in Game with New Acquisition and Rising Revenue

Tencent revealed in a semi-annual report that it has completed the acquisition of Singapore game company Level Up. The Shenzhen-based Chinese Internet giant announced earlier this year that it’d buy 49% of Level Up with US$ 26.95 million.

Games play a more and more importance role in Tencent’s businesses. According to Tencent’s latest earnings report, peak simultaneous online for its QQ Game Platform user accounts were 8.8 million while online game revenues increased 4.6% QoQ to RMB5,564.7 million. Meanwhile, bolstered by heated social game titles and item-based sales within these games, revenues from Tencent’s community and open platforms also increased 7.8% QoQ to RMB 2.22 billion.

Ma Huateng, chairman and CEO of Tencent said that by leveraging Tencent’s leading social platforms across both PCs and mobile phones, the company continued to build stronger user engagement and gain tractions among players. On the other hand, the company’s open platform initiatives paid off according to Mr. Ma, bringing benefits to both Tencent users and partners.

Martin Lau, president of Tencent disclosed in the latest earnings call that the company grabbed more than 30% of China’s SNS/Web game market. Luo Shuohan, CFO of Tencent also mentioned that ARPU for causal games on Tencent platform is between RMB 55 and 100 yuan, while for MMORPG the number is between 100 and 140.

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