Tencent accelerates sales growth to 52% in Q2

Nieuws Breedband China 17 AUG 2016
Tencent accelerates sales growth to 52% in Q2
Chinese internet services provider Tencent reported revenues in the second quarter up 52 percent year-on-year to CNY 35.691 billion (USD 5.382 billion), accelerating growth from an annual rate of 43 percent in Q1. Operating profit was CNY 14.329 billion, an increase of 43 percent year-on-year, while the operating margin fell to 40 percent from 43 percent a year ago. Net profit rose 47 percent to CNY 10.737 billion. 

The owner of the Weixin messaging platform reported social network revenues up 57 percent to CNY 8.556 billion, driven by sales of virtual items and content subscription services. Games revenue rose 32 percent to CNY 17.124 billion. Total online ad revenue increased 60 percent from a year earlier to CNY 6.532 billion, with a boost from performance-based and brand display advertising over the news app Weixin Moments and Tencent News and Video. The latter was helped by Tencent's exclusive rights to the NBA, which more than doubled viewers in the latest season compared to a year ago. 

Tencent is working to grow its content business further with its recent acquisitions of games company Supercell and China Music. Tencent said it also plans to invest more in films and TV series and its own productions in order to drive its online video business and develop more the legal offering of online books and literature. 

Weixin and its international version WeChat counted a total 806 million monthly active users in Q2, up 34 percent from a year earlier. The QQ messaging platform had 899 million monthly active users, an increase of 7 percent annually, and 667 million users accessed the service over mobile devices. Tencent said it also had 105 million fee-based registered subscriptions for VAS, up 25 percent year-on-year. 

Categories:

Internet

Companies:

Tencent

Countries:

China

Tags:

Data services, Messaging, Games, Financial figures, IT - applications

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