Tencent (HKG:0700) is the largest internet service provider in China, and it's just announced half year revenues of $2 billion, up 47 percent year-on-year.
As part of its business, it has a reasonably-sized online gaming division and a tiny mobile gaming unit; although it's looking to beef that up with various platform agreements and development funds, especially with Japanese company GREE.
Less will be more?
"Our mobile value added services business increased slightly in the second quarter of 2011, reflecting the growth in mobile SNS and mobile games," it said, although not breaking out specific numbers.
One issue however has been the new service cancellation policy introduced by China Mobile in early 2011, which Tencent said had resulted in lower realisation rates and dampened revenue growth.
Investment to profit
"While we have already implemented mitigating measures, we expect the negative effect of this policy to linger in the foreseeable future," it added.
Despite this, Tencent said it will significantly increase its investment in mobile, including extending its existing internet platforms to mobile devices and developing new specific mobile services.
"Although these mobile platforms generally do not generate revenue at the moment, they are highly popular among users, and we believe business models will emerge in the future," it pointed out.
[source: Tencent IR (PDF)]
News
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.
Related Articles
Top Stories
News
2 hours, 35 minutes ago
Epic Games hit with €1.1m fine for unfair commercial practices in Netherlands
Feature
May 14th, 2024
Matej Lančarič's Squad Busters deep dive: Under the skin of 2024's biggest launch yet
Feature
May 14th, 2024
53 top mobile games in soft launch: Squad Busters, Battle Guys: Royale, Plants vs. Zombies 3, LEGO Hill Climb Adventures, and more
Events
Valencia Indie Summit 2024 | Europe | May 16th |
Mobidictum Meetup Berlin May 2024 | Europe | May 16th |
Digital Dragons | Europe | May 19th |
GamesBeat Summit 2024 | North America | May 20th |
Mobidictum Meetup Tallinn May 2024 | Europe | May 21st |
Nordic Game Spring 2024 | Nordic | May 21st |
Impact 2024 - Indie Games | May 23rd | |
Morocco Gaming Expo | Africa | May 24th |