Tencent reported revenues for the third quarter up 29 percent year-on-year to CNY 125.4 billion. EBITDA rose 27 percent to CNY 45.1 billion, while profit for the period increased 33 percent to CNY 33.3 billion.
Revenues from VAS increased by 38 percent to CNY 69.8 billion, and online games revenues grew by 45 percent to CNY 41.4 billion. The increase was primarily due to revenue growth of its smartphone games, including domestic titles such as Peacekeeper Elite and Honour of Kings, as well as overseas titles. Total smartphone games revenues were CNY 39.2 billion and PC client games generated CNY 11.6 billion for the third quarter.
Social networks revenues increased by 29 percent to CNY 28.4 billion. The increase reflected contributions from digital content services including Huya’s live streaming service, its video subscription service, and its music subscription service, as well as from in-game virtual item sales. Fee-based VAS subscriptions increased 25 percent year-on-year to 213 million, primarily driven by video and music content subscriptions. Video subscriptions expanded 20 percent year-on-year to 120 million.
Revenues from Online Advertising increased by 16 percent to CNY 21.4 billion, while revenues from FinTech and Business Services increased by 24 percent to CNY 33.255 billion.
Capital expenditures were CNY 8.7 billion, up 31 percent year-on-year, while free cash flow was CNY 28.1 billion, stable year-on-year.
Operating profit reached CNY 38.1 billion, an increase of 34 percent year-on-year, and the operating margin increased to 30 percent from 29 percent last year. Net profit for the quarter was CNY 38.5 billion, an increase of 89 percent year-on-year. Total cash was CNY 265.9 billion at the end of the quarter.
