Tencent to Report Q4 and Full Year 2019

Chinese social and gaming company Tencent will report their fourth quarter and full year 2019 results after the close of Hong Kong markets on March 18. The Shenzhen-based conglomerate expects gaming revenue to increase, and Wall Street estimates projected total revenue of 103.69 billion yuan, an increase of 22.1% year-on-year.

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Tencent‘s third quarter results were largely underwhelming, however gaming revenue increased by 11% year on year. That recovery looks set to continue, given the success of titles such as Peacekeeper Elite, especially in the domestic Chinese market. Per Sensor Tower estimates, the total revenue from PUBG clone Peacekeeper Elite for the entirety of 2019 is expected to be around $776 million, their highest grossing title ahead of Call of Duty with $95 million.

Tencent‘s second-largest revenue stream, their business and fintech segment, slowed to 36% in the third quarter, generating 26.8 billion yuan. However, research from GF Securities predicts that partly due to spending sprees on holidays like Double Eleven and National Week, Tencent‘s payment services will recover their growth momentum.

Analysts predict that Tencent‘s fourth quarter social advertising revenue will reach 15.8 billion yuan, a year-on-year growth of 33%.

The 2020 outlook is likely to be favorable, given the forced digitization of large parts of the economy and essential services and infrastructure due to the COVID-19 pandemic.