Tencent reports over a billion WeChat users in Q1

Tencent Chairman and CEO Ma Huateng

Tencent Chairman and CEO Ma Huateng

While anxious investors had sold off more than US$90 billion of stock since January, Tencent posted a 61 percent jump in net income to 23.3 billion yuan (US$3.7 billion) in the March quarter, outstripping estimates by nearly a third.

Tencent, which is listed in Hong Kong, was not yet active in over the counter trading before the open on the stock market today.

Tencent reported net revenue of 73.5 billion yuan (about US$11.6 billion) and a net profit of 23.3 billion yuan (almost US$3.7 billion). The mobile version of Fornite was an instant hit in the U.S. market after its March launch, becoming the highest-grossing iOS game there. PC games remained flat with 14.1 billion yuan in revenue compared to same period a year ago. Investors began to worry that their margins were under greater pressure, as the company continued to increase its investment to high-growth markets such as streaming video, digital payment, smart retail, cloud services and artificial intelligence. Now not available in China, it is scheduled to be launched there during the next couple of months.

Honour of Kings continues to be a core source of earnings.

Due to the fact that social media services such as Facebook, Twitter, Instagram and Snapchat are inaccessible in China, there exists a whole ecosystem of social networking and messaging platforms that are immensely popular in and around China but hardly known anywhere else in the world.

Social networks revenues increased by 47% to RMB18.1 billion as WeChat user numbers passed 1.06 billion.

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

The overall online games business was boosted by two major games.

That game has gone viral with more than 40 million active users monthly across consoles and PCs. That was followed by a $95 million stake in online short video platform Pear, after the end of the quarter. But Thursday's gain, while translating into a roughly $30 billion (Dh110bn) increase in market value, only helped Tencent recoup a slice of the more than $90bn lost since peaking in January.

The top Chinese internet stock has ramped up spending as it competes with e-commerce rival Alibaba (BABA) on many fronts.

Other earnings drivers for Tencent included a video subscription service that is similar to that of Netflix.

Recommended News

  • Kent State graduate's photos with AR-10 and cap go viral

    Kent State graduate's photos with AR-10 and cap go viral

    But since her pictures went viral, she has received positive, negative and even troubling reactions, including death threats. Kaitlin later tweeted, "As a woman, I refuse to be a victim & the second amendment ensures that I don't have to be".
    Yet Another Report Claims Earlier Than Expect Galaxy Note 9 Launch

    Yet Another Report Claims Earlier Than Expect Galaxy Note 9 Launch

    If you can't get to a Support Centre, you'll have to reset the phone using Recovery mode, which will wipe all your data. It is now confirmed that the Galaxy Note 9 and Galaxy S10 phones will be launched earlier than expected.
    Germany plans to increase defense spending

    Germany plans to increase defense spending

    Finance Minister Olaf Scholz, a Social Democrat, says he envisages the level staying roughly constant "in the coming years". She said it was clear that the German military needed to rebuild its stocks of equipment after years of declining spending.
  • Hamilton wins a relatively ho-hum 2018 Spanish Grand Prix

    Hamilton wins a relatively ho-hum 2018 Spanish Grand Prix

    We would then have a true qualifying tyre, which forces a short first stint in the race and, therefore, a two-stop strategy. Mercedes also completed a trial for F1's governing body by placing two lights on their car's rear-wing endplates.
    Iran nuke deal a big lie

    Iran nuke deal a big lie

    It would be a wonderful thing if we could get the Europeans to do this. "We don't have much to threaten the Americans". The Europeans say they've been getting radio silence from the Trump administration, one reporter said.
    25-year-old Passes as High Schooler to Relive Basketball Glory Days

    25-year-old Passes as High Schooler to Relive Basketball Glory Days

    Michael Hinojosa told NBC DFW the district will "follow better protocols to try and prevent this from happening". Gilstrap-Portley saw this as an opportunity to dust off his sneakers and hit the hardwood like it was 2011.
  • STV Group (STVG) Rating Reiterated by Peel Hunt

    STV Group (STVG) Rating Reiterated by Peel Hunt

    Marston's PLC operates managed, franchised, tenanted, and leased pubs and bars in the United Kingdom and internationally. Peel Hunt restate their Buy rating on Tharisa Plc (LON:THS)'s stock in a research report revealed on Wednesday, 16 May.
    Dog rescues his friend from drowning in pool in Mesa

    Dog rescues his friend from drowning in pool in Mesa

    Remus, the other dog in the video, can be seen attempting to rescue Smokey but first attempts are unsuccessful. Video shows Smokey struggling to try and get out of the pool on May 1 as Remus is right above him.
    Mike Budenholzer to be named new head coach of Milwaukee Bucks

    Mike Budenholzer to be named new head coach of Milwaukee Bucks

    Budenholzer has experience as an National Basketball Association head coach, having last coached the Atlanta Hawks from 2013-18. According to multiple reports , the Milwaukee Bucks have hired Mike Budenholzer to become the team's new head coach.
  • NBCUniversal May Drop WWE Smackdown Live From Its TV Schedule

    NBCUniversal May Drop WWE Smackdown Live From Its TV Schedule

    It looks like SmackDown Live could be leaving USA Network sooner than later because of the fact Raw is such a large property. This is mainly because NBCUniversal wants to only keep Raw which will be three times more expensive than the current deal.
    Kim Kardashian West slammed for promoting appetite suppressants

    Kim Kardashian West slammed for promoting appetite suppressants

    No one should have to feel the need to suppress their appetite to fit to ridiculous beauty standards. You are setting the worst example to girls all over the world.
    Paddy Power Betfair Confirms Merger Negotiations with FanDuel

    Paddy Power Betfair Confirms Merger Negotiations with FanDuel

    In the same way we revolutionized fantasy sports, we will bring innovation to the sports betting space. FanDuel grew to become one of two Scots unicorns, with a $1 billion valuation, alongside Skyscanner.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.