Fin24

Tencent reports 13.6% rise in Q3 net profit

2011-11-09 11:11

TENCENT Holdings, China’s second-biggest Internet provider by market value, reported a lower-than-expected 13.6% rise in third-quarter net profit, marking the slowest growth in more than four years in quarterly profit, hurt by slowing growth in its legacy games and lower margins due to increased investments.

Tencent said on Wednesday its third-quarter net profit rose to 2.45 billion yuan ($377 million), missing analysts’ forecast of 2.63 billion yuan.

Internet value-added services, including online games, formed 80 percent of revenue at 6.0 billion yuan.

Total revenue was 7.50 billion yuan, up from 5.23 billion yuan a year earlier and beating forecasts of 7.12 billion yuan.

Shares in Tencent, which is more than 30% owned by Naspers [JSE:NPN]  South Africa’s biggest media group, ended 0.97% higher on Wednesday, versus the Hang Seng Index’s 1.71% gain.

* Fin24 is a Naspers publication