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Tencent looks to QQ and WeChat as FY13 Q3 sales rise 34% to $2.5 billion

Tencent looks to QQ and WeChat as FY13 Q3 sales rise 34% to $2.5 billion

Chinese internet company Tencent (HKG: 0700) has announced its FY13 Q3 unaudited results for the three months ending 30 September 2013.

Total revenues were $2.5 billion (RMB 15.5 billion), up 34 percent year-on-year.

Value-added services were up 25 percent to $1.9 billion.

Online advertising was up 37 percent to $226 million.

Revenue from ecommerce was up 108 percent to $383 million.

Overall profit was $630.5 million (RMB 3.8 billion), up 20 percent year-on-year.

Tencent ended the quarter with cash and equivalents worth $3 billion, up $620 million compared to three months ago.

All systems go

"In the third quarter, we achieved continued momentum operationally, strategically and financially," said CEO Ma Huateng.

"Operationally, we launched a number of mobile game integrated with Mobile QQ and Weixin [WeChat], which have become highly popular in China.

"Strategically, we invested into, and formed a strategic cooperation with Sogou, a leading search services. Financially, we reported healthy growth in revenue, earnings, and free cash flow.

"We will continue to invest in our business and ecosystem through partnerships and strategic investments to create more value for our users, advertisers, developers and partners."

Pushing the envelope

Tencent doesn't break out revenue from its mobile operations, instead spreading it across its social network revenues and online game revenues, which grew 35 percent to $1.4 billion.

During the quarter, Tencent had 816 million active instant messaging accounts and 272 million monthly active uses on WeChat (domestically and internationally), up 124 percent year-on-year.

In terms of its plans to further roll out mobile games for these platforms, Tencent said it will expand its portfolio, both in terms of internally-developed titles and thirdparty titles.

"Since August 2013, we have introduced a number of smart phone games integrated with Mobile QQ and Weixin, many of which achieved first-ranked positions in application store rankings of game downloads in China," it stated.

"We believe such consistent performance demonstrates that our mobile platforms can achieve not only extensive user reach via Mobile QQ and Weixin game centers, but also viral adoption and enhanced user engagement by enabling game players to interact with their friends and family."

[source: Tencent]


Contributing Editor

A Pocket Gamer co-founder, Jon is Contributing Editor at PG.biz which means he acts like a slightly confused uncle who's forgotten where he's left his glasses. As well as letters and cameras, he likes imaginary numbers and legumes.

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