Tencent advances revenues 48%, profit over 60% in Q1

Tencent advances revenues 48%, profit over 60% in Q1

The company reported a net profit of 23.29 billion CNY ($3.7 billion) on revenue of 73.53 billion yuan ($11.5 billion) - beating a Thomson Reuters estimate of 71.04 billion CNY revenue.

Between its January peak price of HK$476.6 and a low this year of HK$380 on May 8, Tencent lost US$117 billion in market value.

China's largest social network and gaming company defied fears that outsized spending would hammer profitability.

Tencent has historically done well in the games space with the PC its cash cow, but past year its smartphone games business overtook that of PC based on revenue.

The gross profit margin in the quarter was more than 50 per cent, higher than the 47 per cent expected by analysts.

Profit was also helped by one-time gains of nearly 7.6bn yuan from its investments in arenas like video and news. "The increase primarily reflected growth in revenues from digital content services such as live broadcast, video streaming subscriptions and our music service namely WeSing, as well as from in-game virtual item sales", Tencent said.

Shares of Tencent closed little changed before earnings were released. Naspers Ltd., which as Tencent's top shareholder is often regarded as a proxy for the Chinese firm, rose more than 6 percent Wednesday.

Draymond Green and Warriors shut out of National Basketball Association awards
James led the league in minutes played per game as he helped the inconsistent Cavaliers into 4th place in the Eastern Conference. But to keep our appetites satiated, the National Basketball Association announced the finalists for each award on Wednesday.

"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. The company has however been leery of barraging its users with ads - on Wednesday, it declared it had raised the maximum number of ads that customers see on WeChat Moments, a function similar to Facebook's newsfeed, to just two a day from one previously. Fortnite has been developed by video game developer Epic Games who Tencent has a stake in - the game is now unavailable in China, but there are plans to launch the game in the region in the coming months.

But overall costs surged 51 percent.

"We will continue to invest in improving our own products as well as enabling services for our partners", founder and Chief Executive Officer Ma Huateng said in a statement.

The game has gone viral and has over 40 million monthly active users across PC and consoles.

Fortnite is the other game that is driving a strong quarter.

The company, however, warned that delays in earning revenues from those games in China and heavy marketing expenses are expected to hit mobile games revenue in the short term.

Related News:



Most liked

Disruption of Circadian Rhythm Negatively Impacts Mental Health
Our internal body clocks regulate every biological process in our bodies such as eating, our blood pressure, and sleeping. If you're scrolling on your phone past 10pm at night, you might be heightening your risk of mood disorders.

Overwatch Counts Down to Anniversary Event with Skin Reveals
Game director Jeff Kaplan made the announcement via a video last night, outlining some of the plans for this year's anniversary. Soldier:76 received a legendary skin in the game's first version of the Anniversary event, and his new skin is an epic skin.

Stars protest Gaza deaths at Cannes Film Festival
The film, by Spike Lee, stars Corey Hawkins and Topher Grace and takes on the checkered history of the Ku Klux Klan. Cannes is renowned for attracting the world's most handsome people for a week of breathtaking red carpet moments.

Kenny Dalglish presents Mohamed Salah with Golden Boot
Mohamed Salah could yet write one final crowning chapter in what has been a phenomenal season for Liverpool's Egyptian worldwide . A top-four finish is the least Liverpool would expect to achieve given their performances throughout the season.

Trump helped Europe lose its illusions - Tusk
Tusk's tweet, however, was one of the more notable, public denunciations of Mr. The aim is to counter Trump's reimposition of sanctions on Iran.

Sheriff tells Trump: California sanctuary city laws are a "disgrace"
President Donald Trump will be hosting California politicians at the White House today for a discussion on sanctuary city laws. The administration claims they obstruct federal immigration regulations and violate the Constitution's supremacy clause.

Fox to add Tim Allen's 'Last Man Standing' to fall lineup
With our increased investment in football, we're going to use the powerful platform of the NFL to launch our new comedies. Gotham will also be held until the winter after being picked up for a fifth and final season over the weekend.

NSC unanimously termed Nawaz Sharif statement as incorrect and misleading
Ten Lashkar-e-Taiba (LeT) militants killed 166 people and wounded dozens in Mumbai in November , 2008. The prime minister said a person who made the Country an atomic power was being labeled as a traitor.

Ms. Marvel movie in the works: Kevin Feige
It helps that Priyanka Chopra herself had lent her voice for the character of Ms Marvel in a mobile video game not long back. With Avengers: Infinity War broke so many records and had the fans asking for more.

Iraqi Election Frontrunner Moktada al-Sadr Courts Partners to Govern
Under article 76 of Iraq's constitution, the right to form a government falls to the political bloc with the most seats. Closely associated with the Islamic revolutionary guard Corps is considered a puppet politician of Iran.

Sichuan Airlines co-pilot sucked halfway out of cockpit window
In one month there has been several window and engine related problems resulting in one death and several emergency landings . Both were taken to Chengdu No.1 People's Hospital, along with 27 passengers who said they were unwell after the incident.

Have a look at Rage 2's first gameplay trailer
Prior to the official announcement, nearly everyone was saying it was Rage 2 , and it turns out they were right. It's hard to say anything is a guarantee for a game with a 2019 release date.

Taliban claim capturing key areas as clashes still ongoing in Farah city
Residents said Taliban forces began their attack at around 2.00 a.m. (2130 GMT) from several directions. It borders Helmand Province, where the militants control several districts.

This is National Police Week 2018
The families of the late officers Lesley Zerebny and Gil Vega are still struggling every day. So far, in 2018, there have been 51 law enforcement deaths in the United States.

Putin drives across new bridge linking Moscow-annexed Crimea to Russia
The landmark bridge will start regular operations at 5:30 a.m. through the Kerch Strait on Wednesday. Today, Russian President Vladimir Putin drove along the Crimean bridge behind the wheel of Kamaz.