Tencent results blow past forecasts on strength in games, WeChat

Business


Tencent’s revenue, that has been scaling new highs every quarter since 2007, surged 59 percent to 56.6 billion yuan.

Both profit and revenue were all-time highs and soared past average estimates of 14.15 billion yuan and 52.98 billion yuan, respectively, from analysts polled by Thomson Reuters.

The popularity of the fantasy role-playing game Honour of Kings based on Chinese historical characters helped Tencent’s smartphone games revenue climb 54 percent to 14.8 billion yuan, surpassing that from PC games for the first time.

Honour of Kings is the top-grossing mobile game in the world. It has become so popular that Tencent had to introduce curbs on play time last month amid reports of serious addiction among children.

While the Chinese tech giant noted “exceptional strength” from PC games including League of Legends, it cautioned revenue growth rates from the sector were expected to slow down.

Online advertising revenue rose 55 percent to 10.15 billion yuan, helped by a 61 percent rise in “social and others advertising” revenue, mainly from WeChat advertisements.

Monthly active users of WeChat, a messaging-to-payment superapp that is at the core of Tencent’s mobile ecosystem and accounts for about a third of the time spent online by Chinese mobile users, rose to a new record of 963 million.

China’s rapid adoption of the cashless lifestyle, evident from an 86 percent jump in mobile payment transactions in 2016, helped Tencent log fast growth in its payment services.



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