Among a total of 61 China-listed gaming firms, 52 have published their 2016 annual results as of April 9, with 47 of them making profits
China’s gaming sector continued its boom in 2016, thanks to increasing internet penetration and its vast population. More than three-fourths of China-listed gaming firms reported gains for 2016, local media is reporting (in Chinese).
Among a total of 61 China-listed gaming firms, 52 have published their 2016 annual results as of April 9, with 47 of them making profits, according to data compiled by financial data provider East Money Information. In addition, 30 firms, or roughly 58 per cent of the firms that issued results, have each grossed in more than RMB100 million (US$14.4 million) in net profit.
Perfect World (完美世界 in Chinese) and 37wan Network (三七互娱 in Chinese) were the top two performers, reaping RMB1.17 billion (US$169 million) and RMB1.07 billion (US$154 million) in net profit in 2016.
Despite their stunning performance, they are eclipsed by Hong Kong-listed internet giant Tencent and US-listed NetEase, which are the real heavyweights in the country’s gaming sector.
Due to its powerful distribution channels and vast user base, Tencent’s online game segment revenue rose 25 per cent to hit RMB70.84 billion (US$10.2 billion), representing 47 per cent of the internet behemoth’s 2016 revenue, according to the firm’s 2016 annual report. This makes Tencent the largest online game publisher in China.
Tencent is the operator behind the country’s top three highest-grossing PC client game titles, namely League of Legends (英雄联盟 in Chinese), Dungeon Fighter (地下城与勇士 in Chinese) and CrossFire (穿越火线 in Chinese).
While in the mobile gaming arena, Tencent’s mobile MOBA Honor of Kings (王者荣耀 in Chinese) has amassed 50 million daily active users since its launch in November 2015. The sought-after gaming title recently took in a whooping RMB3 billion (US$434 million) revenue every month for the firm, revealed some Tencent staff (in Chinese).
As for its rival NetEase, it’s net revenue from online games reached roughly RMB28 billion (US$4 billion)in 2016, up 61.6 per cent from the previous year, according to its unaudited 2016 results (in Chinese).
Its popular gaming title Onmyoji (阴阳师 in Chinese), which made to the top ten outstanding games last year in China’s iOS app store, was rumoured to bring in RMB1 billion (US$144 million) revenue every month (in Chinese).
The article Majority of China-listed gaming firms in the black in 2016 first appeared in TechNode.
Want to be part of the ecosystem?
Register for your Echelon Asia Summit access pass now! Enjoy +10% off Echelon Asia Summit Startup, Investor and Corporate passes just for being our favourite e27 reader.
The post Majority of China-listed gaming firms in the black in 2016 appeared first on e27.