Success of Tencent has made it a stress-free target for cyber crackdown of China. As the movement to censor content collects speed, the technology major gave one more set of “better than expected” results for the quarter. Its elevating value in the market, on the other hand, recommends that sponsors have yet to recognize the jeopardy in the making of earnings.
Last week, the company worth $392 Billion one more time proved its online supremacy. Income for 3 Months till June smashed anticipations, increasing 70% as compared to the previous year to lead by 18.2 Billion Yuan (almost $2.72 Billion). That has undoubtedly assisted by its fundamental games unit, where trades from titles such as the mobile hit “Honor of Kings” and the PC-based “League of Legends” led 28.4 Billion Yuan.
Tencent also operates WeChat, the most popular messaging app of the country, which lets 963 Million monthly active consumers browse the news, flawlessly pay utilizing a digital wallet, and hail a taxi among other stuffs. The firm is spending deeply in its own music and video platforms as well, while lifting almost $800 Million in a launch of its online literature subsidiary at Hong Kong. The aim is to drag consumers more tightly to apps and platforms of the company. In 2016, over a 1/3rd of WeChat consumers spent over 4Hours each day on the app, 2x the amount than the last year. This data was given by the research team of the company to the media in an interview.
But there is a side effect of being so “up and coming.” In July the official newspaper of the Communist Party, the People’s Daily, criticized against “Honor of Kings” in a report, referring it as an addictive “venom” and calling for tighter limitations on usage. Previously this month, Cyberspace Administration of China claimed that it was inspecting WeChat.