China’s Tencent beats estimates to post 55pc growth in first quarter revenue

.

By Zen Soo
South China Morning Post

Wednesday, May 17, 2017, 6:00pm

Chinese internet giant Tencent on Wednesday posted record-high revenues for the first quarter of the year on the back of a strong performance in mobile games.

Revenues soared 55 per cent to 49.6 billion yuan (US$7.2 billion), beating estimates of 46.4 billion yuan in a Bloomberg poll of analysts.

Tencent, the world’s largest video game company by revenue, also reported a 58 per cent jump in net profit to 14.5 billion yuan, beating projections of 13 billion yuan.

Its mobile game Honour of Kings, which was the top-grossing smartphone title in China last year, had over 50 million daily active users as of December 31. Tencent said it also plans to adapt hit novels and anime into mobile games that will be available to users on its social media platform WeChat and QQ.

Image may contain: 1 person, eyeglasses and closeup

Pony Ma, co-founder and president of Hong Kong-listed Tencent Holdings. Photo: Reuters

WeChat is currently the dominant social media platform in China, with over 937 million people using the app to message friends, order food online and even book taxis.

The Shenzhen-based company posted 6.89 billion yuan in online advertising revenues for the first quarter.

Tencent shares rose slightly on Wednesday, closing 0.39 per cent up at HK$259.80 on the Hong Kong stock exchange ahead of its earnings result. Its shares have gained 37 per cent this year, placing the stock’s growth just behind e-commerce rival Alibaba, whose New York-listed shares rose 41 per cent in the same period. Alibaba owns the South China Morning Post.

Last June, Tencent spent US$8.6 billion to acquire up to an 84 per cent stake in Finnish mobile game developer Supercell.

Pony Ma Huateng, Tencent’s chairman and chief executive, said in March that the firm would invest heavily in cutting-edge technologies such as security, cloud, big data and artificial intelligence “to position us for the next wave of growth”.

http://www.scmp.com/tech/enterprises/article/2094683/chinas-tencent-beats-estimates-post-55pc-growth-first-quarter

Advertisements

Tags: , , , , , , , , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: