• Privatisation tweet

    A probe into a tweet by Tesla chairperson and CEO Elon Musk may open pandora's box.

  • State Capture Inquiry

    Nedbank says ex-Mining Minister Mosebenzi Zwane sought to keep Gupta accounts open.

  • Tighter rules

    'Corporate scandals, rumours and innuendo' has prompted the JSE to plan new listing rules.

Loading...

Tencent beats estimates as WeChat, mobile games drive growth

May 18 2018 12:53
Lulu Yilun Chen, Bloomberg

Tencent posted first-quarter profit that blew past analysts' estimates, bolstered by mobile game blockbusters like PlayerUnknown's Battlegrounds.

Net income climbed 61% to 23.3 billion yuan ($3.7bn) in the three months ended March, the Shenzhen-based company said on Wednesday. That compares with the 17.4 billion-yuan average of estimates compiled by Bloomberg.

Adjusted earnings-per-share were 1.92 yuan, compared with the 1.94 yuan average of 14 analysts compiled by Bloomberg.

Tencent, owner of the giant WeChat messaging and social network platform, has been opening its wallet to sustain growth as desktop gaming slows.

The company is investing in cloud computing, online entertainment and physical retail stores as it locks horns with Alibaba. It’s also secured Chinese distribution rights to some of the world’s hottest games including PUBG and Fortnite, adapting some into mobile titles as more users spend time on smartphones.

"We expect Tencent to consolidate both the PC and mobile games markets," Alex Yao, a Hong Kong-based analyst at JPMorgan Chase & Co, said in a report.

"Tencent’s strength in [the] mobile games market also comes from its equity relationship with leading global developers."

Revenue rose 48% to 73.5 billion yuan, compared with analyst estimates for 70.8 billion yuan.

Shares of Tencent were largely unchanged in Hong Kong before earnings were announced. The stock has fallen 2.4% this year, compared with a 14% rise for New York-listed Alibaba.

* Fin24's parent company Media24 is part of the Naspers Group. Naspers owns a stake in Tencent.

* Sign up to Fin24's top news in your inbox: SUBSCRIBE TO FIN24 NEWSLETTER

Follow Fin24 on Twitter, Facebook, Google+ and Pinterest. 24.com encourages commentary submitted via MyNews24. Contributions of 200 words or more will be considered for publication.

tencent  |  ict  |  companies
NEXT ON FIN24X

 
 
 
 

Company Snapshot

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...

Voting Booth

Did you find Markus Jooste's testimony convincing?

Previous results · Suggest a vote

Loading...