Tencent beats estimates as WeChat, mobile games drive growth

Chart of the day

"Mobile game growth was very strong, as the first quarter is usually a good season when users spend more time on their devices during the holidays", said Benjamin Wu, a Shanghai-based analyst with Pacific Epoch.

Shares in the second most valuable Asian public company has come under heavy pressure leading up to the earnings report, as investors feared the potential for lower margins along with higher costs.

However, those feats were dispelled by the technology giant.

Revenue rose 48% to 73.5bn yuan, compared with analyst estimates for 70.8bn yuan. That represented a 61 percent year-on-year rise. Operating margin increased to 42% from last year's first quarter of 39%.

Revenue breakdown: VAS business, 46.9B yuan (+34%); Online game, 28.8B yuan; Smartphone game, 21.7B yuan (+68%); Social networks, 18.1B (+47%); Online ad business, 10.7B (+55%); Social and others ad, 7.4B (+69%); Other businesses, 15.96B (+111%).

Here's A Tesla Towing A Qantas Dreamliner
The achievement was announced after the ModelX P100D pulled a Boeing 787-9 Dreamliner on the tarmac for 300 metres. Although it's rated to tow 2500kg, the Model X managed to pull the 130,000 kg airplane almost 300 meters.

Kings bowled out for 88 as RCB thrash KXIP by 10 wickets
Barring his match-winning knock against Royal Challengers Bangalore , Rohit has failed to live up to the expectations this season. In order to seal qualification, they will hope Kings XI Punjab lose to both Mumbai Indians and Chennai Super Kings.

Nikki Bella 'speechless' after John Cena admits he wants her back
While Nikki claimed that she "hadn't heard" what Cena said on the show and, when told about his comments, looked surprised. During an appearance on The Today Show , John Cena had a chat about his breakup with hosts Kathie Lee and Hoda.

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. The company announced that had seen growth in the double digits related to the number of daily active users for that game.

Revenue from PC games was flat compared to past year, but analysts believe the comparison was tough with the 2017 first quarter, and overall its games business was strong.

The broader online game business was driven by two major hit games.

The gaming business boosted Tencent's revenues in the quarter. The first PlayersUnknown's Battleground (PUBG), which is a huge multiplayer game online. Last month, Tencent partnered with USA developer Epic Games to launch Fortnite in China. "Fortnite" was developed by Epic Games, a company that Tencent has a large stake in. Now unavailable in China, it will be launched in the country within the next few months. That was buoyed by a one-time gain of nearly 7.6 billion yuan as the value of investments in arenas from video streaming to news content rose.

Tencent's other retail partners include Carrefour, Walmart, Yonghui Superstores, Vipshop Holdings, Bubugao and JD.com, who are looking to leverage the internet giant's capabilities in mobile payments, customer acquisition and cloud services.

Related:

Comments

Latest news

Ronda Rousey Says She Will Be Pregnant 'Someday Soon'
The two wrestlers will be facing each other in a singles match for the Raw's Women's Championship on June 17 Rosemont, Illinois. The 31-year-old WWE superstar has been talking about babies for a while - first bringing up the topic on "Ellen" back in 2016.

Microsoft pushes out new security and privacy related updates for Windows 10
Microsoft released today three additional Windows update packages -Microsoft Releases KB4100347, KB4134660, and KB4134661. Windows 10 Nearby Share uses Bluetooth to detect nearby devices and shares content using WiFi or Bluetooth.

Ajax Cape Town relegated after being found guilty in Ndoro saga
"They lose all three matches 3-0 & fined R50 000 on each offence", SAFA stated on their official Twitter account at the time. Platinum Stars now have 27 points and will be taking part in the PSL/National First Division promotion-relegation play-offs.

Twelve South's AirFly Lets You Connect Wireless Headphones To Anything
Wish you could listen to in-flight TV with your AirPods? We'll be testing AirFly ourselves and will let you know how it performs. AirFly is a tiny gadget from Twelve South that changes that by making any device with a 3.5mm headphone jack AirPods-compatible.

Is Canadian Railway (NYSE:CNI) Now a Sell? Goldman Sachs Downgrades Stock
The stock of Canadian National Railway Company (NYSE:CNI) has "Hold" rating given on Wednesday, October 26 by Stifel Nicolaus. Meridian Wealth Management LLC's holdings in Canadian National Railway were worth $515,000 as of its most recent SEC filing.

Neymar 'scared' ahead of return to the field
Brazil has been formed in Group-E with Costa Rica, Serbia and Switzerland. Brazil are aiming to add a sixth star on their shirts.

NASA to make aviation history with UAV mission on Mars
MarCO's job is to act as a kind of chaperone to InSight Lander as it approaches Mars. Until then, however, the trailblazing CubeSats have a long way to go.

NES and SNES Classic Editions to return
Pre-orders sold out in advance of the launch and those hoping to buy one in-store were met with long lines and empty shelves . There will be no increase in the NES Classic Edition price for its return, as it will still be sold at $59.99.

C's Dominate 2nd Half, Take 2-0 Series Lead
It wasn't about how LeBron James would respond after a quiet 15-point effort as the Boston Celtics rolled in the opener. Who is most likely to win the 2018 NBA Championship? They're gooning the game up, and we've got to do the same thing.

Massive dust storm hits Delhi-NCR on Wednesday morning
Strong winds and dust storm, followed by light showers were witnessed across the national capital, as reported by ANI. The police received almost 60 calls related to fallen trees, electricity polls and wall collapses across the region.

Apple INC (AAPL) Shareholder Gyroscope Capital Management Group LLC Has Increased Position
Brinker Capital invested 0.65% of its portfolio in Apple Inc. 7,393 are owned by Marathon Mgmt. (NASDAQ:FNGN) for 101 shares. Moreover, Ct Mason has 3.78% invested in Apple Inc. (NASDAQ:AAPL) has "Buy" rating given on Sunday, August 16 by Rosenblatt.

Supreme Court to hear pleas challenging Article 35A on August 16
Article 368 (i) of the Constitution mandates that only Parliament can amend the Constitution by introducing a new Article. It is a very sensitive issue, the AG said and made it clear that the Centre did not want to file its reply on validity.

Beta updates to OnePlus devices finally bring group MMS
Coming to the software update, the OnePlus 3 is getting Open Beta 36, while the OnePlus 3T is getting Open Beta 27. For some unusual reason, Android Messages (the default SMS app) on OnePlus devices doesn't support group MMS.

Pennsylvania state Sen. Wagner GOP's pick to face Gov. Wolf
Laura Ellsworth stopping by the Capitol Diner in Harrisburg Monday. "That's the first thing I would do". Wagner only received 36% of the votes in our county.

Volvo Cars to eliminate diesel engines from the new S60 sedan
So your next S60 saloon will not only be missing a diesel , but made Stateside, too. The new car's global production base will be in Charleston, South Carolina.

Other news