Chinese internet value added services provider Tencent reported total revenues of CNY 40.3 billion (approximately USD 6 billion) for the third quarter of 2016, which represents an increase of 52 percent year-on-year. Operating profit reached CNY 14.4 billion, up 40 percent year-on-year. Operating margin fell 36 percent from 39 percent last year. Profit for the period was CNY 10.7 billion (approximately USD 1.6 billion), representing a growth of 42 percent year-on-year. Basic earnings per share were CNY 1.134.
Revenues from Tencent’s VAS business increased by 36 percent year-on-year to CNY 27.9 billion for the third quarter of 2016. Online games revenues increased by 27 percent year-on-year to CNY 18.1 billion. Social networks revenues jumped 58 percent to CNY 9.8 billion. Revenues from Tencent’s online advertising business increased by 51 percent to CNY 7.4 billion for the third quarter of 2016.
Third-quarter EBITDA grew 47 percent year-on-year to CNY 15.8 billion. Capital expenditure was CNY 3.6 billion, up 121 percent year-on-year. Free cash flow reached CNY 14.1 billion, up 113 percent year-on-year. Tencent ended September with net cash of CNY 8.3 billion.
