Tencent reports 46% rise in Q3 but falls short of expectations
The profit growth fell beneath the expected 57 per cent profit forecasted by analysts
Chinese Internet company Tencent reported 46 per cent year-on-year increase in profits and 28 per cent increase in revenues in the third quarter. Despite significant increases, the profit growth fell beneath the expected 57 per cent profit forecasted by analysts.
Revenue increased to US$3.2 billion from US$2.53 billion, whereas profits increased to US$923 million from US$630 million year-on-year, according to an official statement released by the company.
Compared to previous quarters, the growth for this quarter has been the slowest experienced over the last seven years.
“We achieved another quarter of solid growth in our platforms, revenue, and earnings,” said Ma Huateng, Chairman and CEO, Tencent, in a statement, adding, “given our traffic leadership and logged-in relationship with users, together with the proven scale of performance-based advertising services in China and overseas, we see ample scope for growth.”
Bloomberg added:
Tencent’s 28 per cent revenue growth compares with an average of 55 per cent growth between the second quarter of 2007 and last quarter.
The slowdown was partly due to Tencent’s sale of its e-commerce business to JD.com Inc, with online shopping revenue dropping 81 per cent to 459 million yuan.
Tencent is known for its strong presence in social-messaging platforms WeChat and QQ, as well as online and PC games, owning Riot’s League of Legends. The company reported that revenues from social messaging platforms increased by 47 per cent from the same quarter a year ago, whereas online game revenues grew by 34 per cent from the same quarter a year ago. The company’s e-commerce products experienced a significant drop in the third quarter in shifting those products to its new partnership with JD.com.
会社はソーシャルメッセージプラットホームからの収益が前年の同四半期より47%の増加、オンラインゲームからの収益が前年の同四半期より34%増加したと報告した。
会社の電子商取引製品は、第3四半期にそれらを新しいパートナーであるJD.Comへシフトする際に、かなりの落ち込みを経験した。