Tencent's Q3 profit jumps 69%, revenues climb 61%

Cornelia Mascio
Novembre 15, 2017

Thanks to the success in mobile business, PC client games like League of Legends, and its online advertising ventures, Tencent's third quarter earned total revenues of $9.8 billion, up 61 percent over the previous year. 30, the company recorded a net profit of 18.01 billion yuan ($2.72 billion) as compared with 10.65 billion yuan year ago, the Chinese internet giant said in a statement.

The company's revenue rose 61% to 65 billion yuan, beating analysts' estimate of 60.78 billion yuan.

Tencent's revenue from PC games rose 27% to 14.6 billion yuan, while online advertising revenue rose 48% to 11 billion yuan. It said Tencent Video has exceeded 43 million fee-based subscriptions, "which we believe represents the largest video streaming services subscriber base in China". New York-traded Alibaba owns the South China Morning Post.

Martin Lau Chi-ping, the president at Tencent, said in a conference call on Wednesday that the firm's heavy investment in producing original content has generated positive traction and market share. It said the increase was primarily because of greater sharing and content costs, and expenses for payment-related services.

Monthly active user accounts (MAU) reached 843.2 million, which represents a decline of 3.8 percent year-on-year.

The world's biggest games company has smashed expectations for its Q3 2017.

Revenue from smartphone games grew by 84% to 18.2 billion yuan in the quarter, led by the strong performance of titles including its popular multiplayer online battle arena game Honour of Kings.

The fantasy role-playing game based on Chinese historical characters became so popular that Tencent had to introduce curbs on play time earlier this year amid reports of serious addiction among children.

Last year, Tencent ramped up its global video games business with its acquisition of Finnish mobile game developer Supercell Oy for US$8.6 billion.

Investment in mobile gaming, such as its own development studios, and in PC gaming has been a primary driver of revenue.

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