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%).

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.

Trailer : Mission : Impossible - Fallout
Anyway, the sixth film is called Mission: Impossible - Fallout , and it'll be in cinemas in about two months. However, Ethan hunt from the " Mission impossible " could compete with Clint Barton or Natasha Romanoff.

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.

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

Will Barclay appointed to panel selecting NY attorney general; interviews start today
Schneiderman resigned last week following a report by The New Yorker magazine that he physically abused four women he had dated. Schneiderman himself won over the office in 2010 only when Andrew Cuomo left to run for governor.

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.

Manchester United and Liverpool set for new Federation Internationale de Football Association club cup worth £100m
As a result, the competition is expected to take away the existing tournaments: the Club World Cup and the Confederations Cup. Liverpool could be set for a £100m boost after the new Club World Cup deal was put on the table.

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.

BSNL rolls out Rs 118 prepaid plan to take on Reliance Jio
Telecom operators in the country have kept on refreshing their prepaid plans since the entry of Reliance Jio to the Indian market. The state-run telecom operator, BSNL, recently launched Rs 39 prepaid plan that offers unlimited voice calls to the subscribers.

Spike Lee blasts Trump for not condemning the Klan and Alt-Right
He continued: "The United States of America was built upon a genocide of native people, and slavery". I think I count seven "motherfuckers". "This film, to me, is a wake-up call", he concluded.

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.

"Jai Hind" replaces "Yes, ma'am" or "Yes, Sir" in MP
According to reports, the state education board said that this change will instill a sense of patriotism among the students. The opposition Congress was quick to react over the new school education department order.

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.

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.

White House Blames Deadly Gaza Violence On Hamas 'Propaganda'
But Israel's Prime Minister Benjamin Netanyahu said his troops was acting in self-defence against Hamas, Islamist rulers in Gaza. No Israeli soldier or civilian was killed or wounded in Monday's clashes, according to Vox .

When does the Premier League transfer window open and close?
Then it all culminates with Jim White donning a yellow tie and no doubt a massive hard on under the desk. It'll be interesting to see if the decision to finish early will work in the league's favour.

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.

European Union and Iran seek to save nuclear deal after U.S. pullout
Foreign Minister Heiko Maas said, however, that it could be hard to protect European firms from any fallout from the USA decision. The EU's energy commissioner is also traveling this week to Iran to discuss strengthening European energy support to Iran .

Other news