Summary:
Tencent Holdings (0700.HK) has posted a 32% increase in net profit for the second quarter to RMB 7.975 billion, beating the market estimate of RMB 7.304 billion, reports Sina.
The company posted a 19% increase in revenue to RMB 23.4 billion, missing the consensus estimate of RMB 24 billion.
Why It Matters:
Tencent announced that the income from its add-on value businesses had increased 17% to RMB 18.4 billion. In terms of add-on value businesses, gaming increased 17% compared with the same period in 2014 to RMB 12.9 billion, and Tencent’s social network business increased 18% to RMB 5.4 billion.
Advertising income almost doubled to RMB 4 billion. Tencent attributed the fast growth in advertising income to video advertising and advertising aimed at its mobile app users.
Tencent has also put considerable effort into monetarizing its flagship product, Wechat. The company has launched huge promotions to encourage users to link their accounts to credit cards in order to increase Tencent’s online payments market share.
http://sgi.seleritycorp.com/tencent-posts-32-increase-in-net-profit-for-2q-2015/