China's #1 mobile game publisher Tencent generated $487 million in FY14 Q2

Now focusing on 'game portfolio expansion'

China's #1 mobile game publisher Tencent generated $487 million in FY14 Q2

Chinese internet giant Tencent (HKG:0700) has announced its unaudited FY14 Q2 financials, for the three months ending 30 June 2014.

Total revenues were $3.2 billion, up 7 percent quarter-on-quarter.

Profit was $947 million, down 9 percent quarter-on-quarter.

Tencent ended the quarter with cash worth $3.7 billion.

Mobile's top cat

Looking at Tencent's value-added services division, revenues were $2.6 billion, up 9 percent quarter-on-quarter.

Games accounted for $1.8 billion, up 7 percent.

Tencent said online PC games experienced "weaker seasonality" but smartphone games integrated with its Mobile QQ and Weixin (WeChat) platforms performed strongly.

Indeed, according to App Annie, it's been the #1 publisher on the Chinese App Store in terms of downloads and revenue for every month in 2014 so far.

Smartphone gaming revenue via QQ and Weixin was $487 million during the quarter.

New strategy

"Given we have already achieved substantial revenue from smartphone games in the first half of 2014, we intend to prioritise user engagement and game portfolio expansion over revenue growth during the second half of this year," Tencent stated.

"Consequently, it is possible that our smartphone games revenues for each of the coming two quarters would be broadly stable as compared to the level for the second quarter of 2014."

Usage of Weixin/WeChat was up 57 percent year-on-year to 438 million monthly active users.

QQ has 521 million MAUs, up 45 percent, while Qzone MAU had 497 million, up 37 percent.

[source: Tencent]

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