Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

Enterprise

Tencent net profits up 58% in Q1 to beat estimates

Chinese technology giant Tencent reported first quarter results which exceeded expectations, helped by robust revenues from its hit mobile games/AFP-File

HONG KONG, China, May 17 – Chinese technology giant Tencent on Wednesday reported first quarter results which exceeded expectations, helped by robust revenues from its hit mobile games.

Its overall revenue jumped 55 percent to 49.55 billion yuan year-on-year, while net profit was up 58 percent at 14.48 billion yuan. Analysts polled by Bloomberg News expected 46.4 billion yuan in revenue and 13 billion yuan in net profit.

Revenue from its smartphone games achieved 12.9 billion yuan ($1.88 billion) alone in the first quarter, a 57 percent year-on-year growth.

Analysts said the results were helped by Tencent’s fantasy role-playing hit title Honour of Kings.

“Tencent’s mobile gaming business was the main contributor, especially Honour of Kings, which is probably generating two to three billion yuan of revenue a month,” RHB Research Institute analyst Li Yujie told Bloomberg.

Tencent also operates China’s biggest messaging service WeChat through which a variety of businesses including gaming, advertising and social networking have flourished in recent years.

Monthly active users for WeChat reached 938 million for the quarter, a year-on-year growth of 23 percent.

However, the company saw a setback in May after Russia blocked its WeChat messaging app.

Russia’s telecoms watchdog said the messaging service “did not provide its contact information for the register of information distribution organisations”.

A law passed in 2014 requires foreign messaging services, search engines and social networking sites to store the personal data of Russian users inside Russia.

Advertisement. Scroll to continue reading.

Sites that breach the law are added to a blacklist and internet providers are obliged to block access.

Tencent became China’s most valuable firm in September, beating state-owned telecom behemoth China Mobile and nearly reaching half of Apple’s valuation.

In March, it bought a five percent stake worth US$1.8 billion in the Tesla electric car company.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...