1) "Now, Tencent is leveraging this same powerful ecosystem to build its own e-commerce platform—a move likely unsettling for competitors."
Tencent really only has one e-commerce competitor in China: 800 lb gorilla Alibaba. Tencent's efforts are directly aimed at weakening this historic rival. Based on the performance of Pinduoduo over the last several years, Tencent has done a pretty good job.
2) "a very strong work ethics among workers in China, including a very deep engineering talent pool, including entrepreneurism among companies of all sizes, small, medium and large companies. And also there is a vast and comprehensive supply chain in China"
Massive long term advantages for China. Can't imagine anyone in the West (besides Elon) working 996, let alone 997. It's considered an inhuman work schedule there.
The revenue from game-related services of Huya in this quarter witnessed a year-on-year growth of 209% on a quarterly basis. Personally, I think this growth actually has little to do with the disputes between Tencent and Apple.
Yes, the 209% is absolutely accurate, but keep in mind that they report this on a net basis. In the earnings call, they mentioned that the actual transaction volume of games grew 20-fold year-over-year. One of the strongest performers was DnF, which Tencent has been distributing independently, bypassing all app stores.
Thanks for your reply. I didn't listen to the conference call. The number of 20 times is still a bit surprising. Of course, it may also be that we didn't do much in this business before. And the revenue of DnF really exceeded expectations. And it's not known whether it's a good thing or a bad thing in the future that Huya and Douyu spend more energy on game promotion services.
I totally agree that the 20x growth is mainly because they just started this business, so probably a year ago there wasn’t much activity, making it growth from a very low base. Whether this is good or bad, I don’t know, but it clearly follows Tencent’s playbook of phasing out low-margin businesses like live streaming and focusing on higher-margin revenue streams. We’ll see how it develops.
1) "Now, Tencent is leveraging this same powerful ecosystem to build its own e-commerce platform—a move likely unsettling for competitors."
Tencent really only has one e-commerce competitor in China: 800 lb gorilla Alibaba. Tencent's efforts are directly aimed at weakening this historic rival. Based on the performance of Pinduoduo over the last several years, Tencent has done a pretty good job.
2) "a very strong work ethics among workers in China, including a very deep engineering talent pool, including entrepreneurism among companies of all sizes, small, medium and large companies. And also there is a vast and comprehensive supply chain in China"
Massive long term advantages for China. Can't imagine anyone in the West (besides Elon) working 996, let alone 997. It's considered an inhuman work schedule there.
Excellent summary of the results. Thanks.
The revenue from game-related services of Huya in this quarter witnessed a year-on-year growth of 209% on a quarterly basis. Personally, I think this growth actually has little to do with the disputes between Tencent and Apple.
Yes, the 209% is absolutely accurate, but keep in mind that they report this on a net basis. In the earnings call, they mentioned that the actual transaction volume of games grew 20-fold year-over-year. One of the strongest performers was DnF, which Tencent has been distributing independently, bypassing all app stores.
Thanks for your reply. I didn't listen to the conference call. The number of 20 times is still a bit surprising. Of course, it may also be that we didn't do much in this business before. And the revenue of DnF really exceeded expectations. And it's not known whether it's a good thing or a bad thing in the future that Huya and Douyu spend more energy on game promotion services.
I totally agree that the 20x growth is mainly because they just started this business, so probably a year ago there wasn’t much activity, making it growth from a very low base. Whether this is good or bad, I don’t know, but it clearly follows Tencent’s playbook of phasing out low-margin businesses like live streaming and focusing on higher-margin revenue streams. We’ll see how it develops.
Thanks for sharing. I enjoyed reading it. The Huya thing sounds impressive. 20x