Tencent delivered another stellar quarter this morning. (full report here)
- Tencent Holdings, China's biggest Internet company by revenue, reported first-quarter profit jumped 61 percent, beating analysts’ estimates, after offering new online games to boost sales. Net income climbed to 2.87 billion yuan ($442 million) from 1.78 billion yuan a year earlier. That beat the 2.36 billion- yuan average of seven analyst estimates compiled by Bloomberg. Sales rose 50 percent to 6.34 billion yuan.
- Revenue from mobile and telecommunications services rose 26% to 777.8 million yuan from 618.2 million yuan, while revenue from online advertising rose 37% to 280.9 million yuan from 204.3 million yuan.
- Tencent led Chinese games companies including NetEase.com Inc. and Shanda Games in increasing online sales as new titles such as “Seven Heroes” helped attract players. Demand from gamers in the world’s biggest Internet market is helping Chairman Ma Huateng fund expansion in new services such as electronic commerce and social media.
- Shares of Tencent closed unchanged at HK$209.80 in Hong Kong trading today before the earnings announcement. They have gained 24 percent this year.
- The company increased its share of China’s online games market to 29.1 percent in 2010, from 21.1 percent a year earlier, according to research company iResearch.
- Tencent will increase spending this year on services including social media, Internet search and e-commerce, Ma said in March.
- The company, the leading provider of instant messaging service in China, will also step up efforts to expand overseas, according to Ma. There were 674.3 million active user accounts for Tencent’s QQ instant-messaging service at the end of March, compared with 647.6 million three months earlier, the company said.
- Sales of Internet value-added services, including online games and QQ-related subscription fees, rose to 5.25 billion yuan from 3.39 billion yuan, Tencent said. Online advertising sales increased to 281 million yuan from 204.3 million yuan.