Tencent blows past estimates as WeChat, games drive growth

Tencent blows past estimates as WeChat, games drive growth

Smartphone games revenue, the largest revenue contributor, jumped 68 per cent to 21.7bn yuan while revenue from the more lucrative category of PC games was flat at 14.1bn yuan.

Despite criticism that Tencent has lost its innovation ability and has become more like an investor, the company has proved that its investing activities actually go hand in hand with the development of its core business. It has developed a mobile version of the former that is available globally, while it owns almost half of Epic Games, the developer of Fortnite.

The operating profit surged 59 percent to CNY 30.692 billion while the net profit going 61 percent higher to CNY 23.290 billion. Since late March, the shares have seen a sharp reversal, losing about $87 billion in value to leave Tencent with a market capitalisation of about $480 billion.

Tencent has been on a shopping spree, expanding into different sectors including e-commerce and automobiles. Earlier Wednesday, Tencent shares were down 0.45% at HK$396.2.

With strong cashflows and a huge customer base in excess of one billion users, Tencent has been aggressively seeking out start-ups with good potential and boosting their chance of success by providing funding support as well as customer traffic. "Media advertising revenues increased by 31% to RMB3.30 billion, primarily driven by revenue growth from Tencent Video due to an increase in video views, and new advertising formats within original productions".

STALKER 2 Announced From Original Devs, But Won't Come Anytime Soon
Stalker 2 was originally revealed back in 2010, but it didn't get very far before everything-the game and the studio-fell apart. However, I'm sure in due time we'll learn more about S.T.A.L.K.E.R. 2 and the platform (s) it will be playable on.

Over the past year Tencent has completed 62 deals involving direct investments and mergers and acquisitions, according to data compiled by Bloomberg.

In the video content sector, Tencent poured a total of $1.1 billion into two rivals in a 24-hour period, investing US$632 million and US$461.6 million respectively in Chinese game-streaming platforms Douyu and Huya in March.

Monthly active user accounts (MAU) declined to 805.5 million, down 6.4 percent from the year before and from 783 million in the previous quarter. The following month it led an investment of 617 million yuan in Pear Video, an online short video platform, that counts the listed unit of People's Daily as a shareholder. Epic is a company in which Tencent has a large stake.

The internet giant has also plunged into offline retail sectors.

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