Tencent earns net profit of US$1.03 billion in Q1 2014
Chinese company’s mobile gaming and chat app business helped increase net profit by 58% year-over-year; pulled in revenues of US$2.95 millionBy Jonathan Toyad 15 May, 2014
According to its recently-published financial report, the company earned a net profit of US$1.03 billion, up 58 per cent year-over-year. It also pulled in revenues of US$2.95 million, up 36 per cent year-over-year.
This windfall for the company is due to its booming mobile gaming business and messaging app WeChat being a social gaming platform. For the former, the company handles Chinese operations for hit games like the sugar-laced match-three puzzle game we mentioned earlier. For the latter point, there are currently 396 million active users per month on WeChat and its instant messaging software service QQ.
Six of the company’s mobile games were ranked within the Top 10 high-grossing apps on iOS in China. It also helped that the PC Asian fantasy MMO Blade & Soul helped drive revenues to the aforementioned amount.
Tencent CEO and Chairman Ma Huateng said that its mobile game business achieved market leadership and 29 per cent year-on-year growth, thanks to an expanded mobile ecosystem. “We transformed our e-commerce strategy through our combination with JD.com, China’s leading online retailer; deepened our mobile games pipeline via an investment in CJ Games; and broadened our O2O offerings through partnerships with category pioneers such as Dianping and Leju. We look forward to continuing to balance our strategic investments in O2O services, online payment and digital content with maintaining healthy financial returns, and to developing new services for users as China’s internet evolves.”
Tencent has been on a shopping mood as of late, with its recent acquisition being NavInfo.
WeChat China WeChat is a messaging application that enables its users to keep in touch with everyone important. Latest funding: Not specified Investors: Not specified