On November 13, Tencent today released its unaudited results and announcement for the third quarter (as of September 30). According to the financial report, Tencent's revenue in the third quarter was 97.2 billion yuan, a year-on-year increase of 21%; its profit in the period was 25.086 billion yuan, a year-on-year increase of 23%; its net profit margin rose to 26% from 25% in the same period last year. Tencent's online game revenue in the third quarter was 28.6 billion yuan, up 11% year on year.
The results show that in the third quarter,Tencent's online game revenue increased 11% to 28.604 billion yuan.
Total smartphone game revenue (including smartphone game revenue included in social network business) increased by 25% year-on-year to 24.3 billion yuan.The increase in revenue is mainly due to the strong performance of major domestic games and the increased contribution of overseas games.
Smartphone game revenue grew 9% month on month. In China, the summer content update of peace elite has increased user participation. Peace elite contributed the whole quarter's running income, but it is still in the early stage of recognizing the deferred income. The number of active accounts of "glory of the king" remained stable, and the number of users purchasing season tickets increased. The new role-playing games and strategy games also contributed to quarterly revenue growth.
In the international market,The number of monthly active accounts of pubg mobile doubled year on year. Call of duty mobile, jointly developed by Tencent and activation blizzard, has over 100 million downloads within one month after its launch, becoming one of the most downloaded smartphone games。
Tencent's PC client game revenue fell to 11.5 billion yuan, down 7% year-on-year and 2% month on month, due to the fact that the number of paying users of "dungeons and Warriors" was less than last year's and the revenue fell after the 11th anniversary content was updated. With the strong IP and loyal user base of the core multiplayer online tactical competitive game "hero League", its self-propelled chess mode "game of cloud top" has gained a global leading position in this game category. The game of the cloud top has increased the use time and overseas revenue of the users of the hero League. In China, the active users and flow revenue of hero League also increased year on year.
Tencent has actively implemented the health system since 2017, and further upgraded it last year to help minor users develop good game habits. As a result, Tencent believes that the recent new regulations on the game behavior of minor users have limited further impact on our business.