Tencent’s Profits Soar by More Than 60%

By Faith Magbanua, May 18, 2018 00:05 AM

WeChat(Facebook/ WeChat)

Chinese tech giant Tencent Holdings has posted a record quarterly profit for the past three months to March, sending its shares up to more than 5% on Thursday.

The firm, which owns the popular messaging app WeChat, have posted a 61% year-on-year jump in profit, to 23.29bn yuan ($3.7bn; £2.73bn).

In addition, Tencent's online games, like the hugely popular Honour of Kings, have also gained an increase in its revenues by 26%.

Known as China's very own WhatsApp, WeChat, is now China's biggest social network.

Analysts have reported that most of Tencent's revenue growth came from the gaming apps it owns and the purchases that users make within those games.

WeChat is integral to that revenue as Tencent uses the platform as a way of getting those games out to users.

Together with its Chinese-only version Weixin, WeChat have reached one billion monthly users for the first time earlier this year, which helped advertising revenue grow 55% to 10.69 billion yuan in the first quarter.

In comparison, Facebook's messaging service WhatsApp has about 1.5 billion monthly users.

However, aside from being a messaging service, and a window to online games, WeChat now allows users to book a taxi, order food or pay for goods online. Merchants then pay Tencent a fee for service.

WeChat is also an app where players of games like the hugely popular Honour of Kings, can compare gaming scores with their friends - creating another layer of social networking within the platform.

Tencent said that its newly launched mini games platform within WeChat had achieved "significant success".

"We opened up the platform to third-party game developers in late March and over 500 Mini Games are now available," the company said in a statement.

The tech giant also said on Wednesday that a new payment system was being picked up quickly by supermarkets.

"For merchants, we introduced a scan-to-buy solution, as one of our smart retail initiatives [which allows] customers to skip the check-out queue, boosting transaction efficiency during peak hours."

Revenue from other businesses within Tencent, including its cloud services, grew by 111% year-on-year in the period.

"The growth in our payment solution business was mainly contributed by the rapidly increasing offline commercial transaction volumes and consumer cash withdrawal fees," the firm said.

Tencent was founded in Shenzhen, China, in 1998. Its shares are listed in Hong Kong Stock Market.

 

Related Article

Must Read

comments powered by Disqus

More from CCD

Death Toll Rises to 256 in Indonesia Earthquake

New updates are reported regarding the latest earthquake that hit Indonesia.

Alibaba Plans to Merge China Food Delivery Businesses Ele.me and Koubei

Alibaba makes a move on the food delivery industry.

Little Jinju Has Gone to Heaven after Nearly 3-Year Struggle with Blood Disease

Aug 1, 2018, little Jinju passed away in a sudden in northern Shaanxi, her hometown, after having struggled with congenital blood disease for 2 years and 9 months.

The Truth About China’s Vaccine

What do we know about China's vaccine scandal?

Is Google Working on a Censored Search Engine for China?

Is it possible Google found a way to make its way in China and what will it mean?

Killer Heatwave to Sweep China By 2070

Check out how a heatwave can make massive problems in China once it arrives in 2070.

“China’s Nick Vujicic” Challenges to Climb Mountains to Glorify God

Zhang Wei, an ALS patient who is predicted by a doctor not to survive 18 after diagnosis, has succeeded in climbing two high mountains in the last two months.

US and China Fights Over $113M Asian Investment

The never ending economic fight between US and China has gotten a little bit worse, this time involving Asia.

Australian Archbishop Philip Wilson Resigns After Sex Abuse Scandal

One of Australia's top officials resigns after being convicted regarding his involved in covering up a sex abuse scandal in the church.