Games and Advertising Lift Tencent to Record First Quarter Profit

Warnings that Tencent, Asia's highest-valued tech company, might suffer a rare poor quarter of business proved unwarranted after the company smashed analyst expectations for its latest earnings thanks to its fast-growing mobile games business.

China's largest social network operator reported net income of 23.29 billion yuan (US$3.65 billion) in the quarter ended March 31, beating average market expectations by about 30 per cent. Revenue reached 73.53 billion yuan, up 48 per cent from the same time a year ago, driven by online advertising, online games and messaging services.

Tencent has stepped up its investment activities over the past year, not only making deals in areas like gaming, entertainment and frontier technology, but also in retail and e-commerce - traditionally viewed as rival Alibaba's turf.

Another title - Honour of Kings - was the world's highest-grossing mobile game previous year thanks to its China-based users and Tencent has been pushing it to worldwide audiences.

Tencent is back in the $500 billion club. That represented a quarter-on-quarter rise of 12 per cent.

"It is a matter of a fact that the competition is actually very heavy, there have been a lot of subsidies provided in the market by our market peers, and as a result we have to follow suit", Tencent President Martin Lau said on an earnings call.

He added that Tencent's WeChat ecosystem gives it a unique position to take advantage of an enlarged market.

Revenue rose 48% to 73.5bn yuan, compared with analyst estimates for 70.8bn yuan. However, the mobile gaming market has exploded in recent years, especially in China, and Tencent has ridden the growth to the bank.

Fortnite is the other game that is driving a strong quarter. The mobile version of Fornite was an instant hit in the United States market after its March launch, becoming the highest-grossing iOS game there.

Revenue from PC games was flat compared to previous year, but analysts believe the comparison was tough with the 2017 first quarter, and overall its games business was strong.

Tencent's shares have fluctuated sharply this year. Tencent attributed the increase to growth in digital content services such as live broadcast, video streaming and in-game virtual item sales, and its Karaoke app WeSing. The company is once again worth more than half a trillion dollars.

The company is exploring ways to integrate short video into its social network platforms, Tencent chairman and chief executive Pony Ma Huateng said in March during annual parliamentary meetings in Beijing.

(Copyright © 2015. All Rights Reserved.)
 
Recommended

Judge Denies Manafort's Motion To Dismiss Some Of Mueller's Charges
He has pleaded not guilty to all of the charges, none of which are directly related to work he performed for Trump's campaign. Manafort had argued that Mueller had exceeded his authority because the case was unrelated to Russian election interference.

Bbt Capital Management LLC Decreased Nxp Semiconductors NV (NXPI) Stake
For NXPI , the company now has 3.98 billion of cash on the books, which is offset by 1.25 billion in current liabilities. On Thursday, May 3 the stock of NXP Semiconductors N.V. (NASDAQ: NXPI ) earned "Hold" rating by Oppenheimer.

New Pokemon Web Domains Registered, Teasing Imminent Reveal
Naturally then, people have been speculating when the " Pokemon Go" style game will come to the Nintendo Switch . This news that a Pokemon game will be coming to Nintendo Switch has been building for a while now.

Metro Exodus delayed, won't see light of day until Q1 2019
The report states that THQ Nordic is "looking forward to Deep Silver's next key release, Metro Exodus , now expected in Q1 2019". The game's publisher, Deep Silver, has released a statement, describing the reasoning behind the delay.

Reilly Smith continues setting up goals for Golden Knights
The Jets smothered the Golden Knights' defensemen, and turned the approach into 10 takeaways and a number of scoring chances. At the 17:22 mark the Golden Knights were ahead 2-0, but they knew the Jets wouldn't abort their mission.

Novartis Says General Counsel to Retire After Cohen Payments
Novartis said Wednesday its top lawyer is retiring over the Swiss pharmaceutical company's relationship with a firm owned by U.S. He will be replaced by chief ethics, risk and compliance officer Shannon Thyme Klinger.

Overwatch will be free to play for a weekend
He also said that there will be a lot of diversity in the type of heroes that can play on the map. Overwatch's anniversary event begins on May 22 and ends on June 12.

Oil supported by Iran sanction fears, holds near 2014 highs
US West Texas Intermediate (WTI) crude futures were at $71.02 a barrel, down 29 cents, or 0.4 percent, from their last settlement. The production growth may be far from over, contributing to USA crude´s discount to Brent , analysts said .

Chlorine likely used in February attack in Idlib, Syria-weapons agency
Syria and Russian Federation accused volunteer rescue workers of staging the Douma attack at the behest of the USA and its allies. France and the United States stated that the evidence of use of chemical weapons in the Duma.

Kristen Stewart Smashes Sexist Rules By Taking Shoes Off At Cannes
The actress, who in the recent years earned the moniker Queen of Cannes , isn't representing a film at the 2018 festival. But, as it started to rain, Kristen headed toward the stairs removing her heels in order to get there a little quicker.

Pope Francis expresses concern over escalating violence in Middle East
ReutersPope Francis made the comments at his regular Wednesday address at St Peter's Square, in the Vatican. He said: "When I read this, I think about myself, because I'm a bishop and I'll have to take my leave".

Palestine withdraws ambassadors from four countries of Europe
Israel said all 86 countries with diplomatic missions in Israel were invited to the event, and 33 accepted. The Palestinians said they consider the participation a "grave violation of worldwide law".

Paddy Power in discussions to combine United States business with FanDuel
FanDuel , founded in Edinburgh , is backed by private equity firm Kohlberg Kravis Roberts, Google Capital and NBC Sports Ventures. The news follows Monday's US Supreme Court, paving the way for individual states to legalise the practice.

First Mission Impossible: Fallout Trailer Introduces a Deadly Henry Cavill
Anyway, the sixth film is called Mission: Impossible - Fallout , and it'll be in cinemas in about two months. Knowing that none of these stunts are done using CGI makes this all the more incredible.

Marcus Smart calls out JR Smith after Game 2
It's like a bully; you keep letting a bully pick on you, he's going to keep picking on you until you stand up". Said Thompson: "If we don't get stops on the defensive end, they're going to make open threes".


More News

News
More News