The Chinese tech giant reported a 175% rise in profit for the fourth quarter, beating market estimates.
The Shenzhen-based company its financial report for 4Q 2020 and the whole year on March 24. Net profit reached CNY 59.3 billion in the three months ended December, up from CNY 21.6 billion during the same period in 2019 and 80% above analyst estimates, according to Bloomberg data.
Total revenue for 4Q rose 26% to CNY 133.7 billion, from CNY 105.8 billion a year earlier, also slightly ahead of the consensus estimate of CNY 133.1 billion.
Tencent's total revenue for the whole year 2020 reached a staggering CNY 482.064 billion, up 28% year-on-year, exceeding the market expectation by about CNY 2 billion with a net profit of CNY 159.847 billion, up 71% year-on-year.
The total remuneration cost of Tencent in 2020 was CNY 69.638 billion, while the number of employees reached 86000, an increase from 63000 in 2019, of which R&D personnel accounts for 68%.
In terms of the main business, value-added services still remained Tencent's largest business in 2020, contributing CNY 264.21 billion in revenue, accounting for 55% of the total. The game business revenue increased by 36% to CNY 156.1 billion, accounting for 32.4% and the social network revenue increased by 27% to CNY 108.1 billion.
Since the establishment of the industrial Internet strategy in September 2019, Tencent has continuously increased 2B business investment. In 2020, Tencent's financial technology and enterprise services business revenue increased by 26% year-on-year to CNY 128. billion, accounting for 27% of the group's total revenue, continuing to consolidate its position as the group's second-largest business.