Tencent Revenue Growth Strong, But Adjusted Earnings Miss

17 May, 2018, 09:31 | Author: Arnold Perez
  • Chart of the day

The results are likely to please Tencent's army of investors.

On Wednesday, Tencent reported its earnings for the first quarter that beat Wall Street expectations boosted by its hugely successful gaming business.

Due to the fact that social media services such as Facebook, Twitter, Instagram and Snapchat are inaccessible in China, there exists a whole ecosystem of social networking and messaging platforms that are immensely popular in and around China but hardly known anywhere else in the world. In retail and e-commerce - traditionally viewed as rival Alibaba Group's turf - it has splashed out billions since 2017 on deals at home and overseas.

Jefferies analysts wrote in an accompanying note that Tencent's gross profit margin was higher than expected with its " strong mobile game rebound", but added a structural business mix change might continue to weigh on the firm's margins.

"The results were good even without the one-time gains, but the gains made it even better", said Bhavtosh Vajpayee, a Hong Kong-based research analyst at Bernstein.

Tencent reported a 111 percent rise in "other" revenue in the quarter to 15.96 billion yuan on growth in payment solutions and cloud services.

More news: WhatsApp pone "orden" en los grupos
More news: Guitarra que usó Kurt Cobain en MTV Unplugged está perdida — Se busca
More news: CBS sues to head off Redstone's family

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

Tencent has rights to operate that game across China but has said as not yet been monetized, highlighting the potential the title has for the future. "Smartphone games revenues alone were up 68 percent year-on-year to 21.7 billion yuan, thanks to titles such as 'Honour of Kings'". That helped drive a 55% local currency gain in advertising revenue to 10.69 billion yuan.

The operating profit surged 59 percent to CNY 30.692 billion while the net profit going 61 percent higher to CNY 23.290 billion. Tencent attributed the increase to growth in digital content services such as live broadcast, video streaming and in-game virtual item sales, and its Karaoke app WeSing.

Tencent had warned in March that heavy spending could crimp profit, sending shares sharply lower.

The company is exploring ways to integrate short video into its social network platforms, Tencent chairman and chief executive Pony Ma Huateng said in March during annual parliamentary meetings in Beijing.

The drop was partly triggered by the company's warning in March that margins may be hurt by its plan to invest "aggressively" this year into areas including video content acquisition and payment subsidy.

Recomendado:

  • Industrial production up 0.7% in April

    Industrial production up 0.7% in April

    Utilities' output gained 1.9% after increasing 6.1% in March, while mining was 1.1% higher after a 0.8% increase the month before. Industrial production grew 0.7% in April after a downwardly revised 0.5% increase in March, according to the Federal Reserve.
    Pliskova pierde el control y golpea la silla del árbitro

    Pliskova pierde el control y golpea la silla del árbitro

    La sorpresa llegó cuando se acercó a la juez, a quien no solo no saludó, sino que romió la raqueta a golpes contra su silla. Esto le podría costar duras sanciones a la tenista de 26 años por parte de la Federación Internacional de Tenis (ITF).
    Benitez calls for united front at Newcastle

    Benitez calls for united front at Newcastle

    The defender has had a superb season at Newcastle and it is expected that Rafa Benitez will struggle to hold on to his captain. When I made a decision to go to Newcastle and stay there, even in the Championship , it was also because of my family.
  • Microsoft to launch low-priced  Surface

    Microsoft to launch low-priced Surface

    The cheapest version sounds like it will start at $400 without a keyboard cover or stylus, and with 64GB of internal storage. Intel is slated to provide the main processor and graphics for these devices that are said to be running Windows 10 Pro.
    Smith set to announce rep retirement, effective immediately

    Smith set to announce rep retirement, effective immediately

    But Walters believed the 32-year-old, who missed last year's series with an ACL injury, would rise to the challenge. It's not fair on me, my family and my Storm teammates (to continue).
    Mariners Star Cano Banned 80 Games Over Failed Drug Test

    Mariners Star Cano Banned 80 Games Over Failed Drug Test

    He has explained to us what happened, accepted the punishment and has apologized to the fans, the organization and his teammates. Cano is now on the disabled list after fracturing his hand in the Mariners' 5-4 loss to the Detroit Tigers on Sunday.
  • EE UU mantiene preparativos para cumbre entre Trump y Kim

    EE UU mantiene preparativos para cumbre entre Trump y Kim

    Las declaraciones de Kim llegan después de que se pusieran en marcha, el 11 de mayo, los ejercicios militares conjuntos de EEUU y la República de Corea , llamados "2018 Max Thunder".
    Verstappen fastest on 1st day of mid-season F1 tests

    Verstappen fastest on 1st day of mid-season F1 tests

    After a breathless and competitive season of Formula One, this weekend's action from the Spanish Grand Prix felt like a rerun. This is the type of race that reminds spectators and drivers alike that Hamilton still has unrivaled pace.
    Trump spoke about the state of health of the wife after surgery

    Trump spoke about the state of health of the wife after surgery

    Although renal artery embolization can be used for cancer or traumatic injury applications, for Mrs. Melania Trump underwent a surgery at the Walter Reed National Military Medical Centre in Maryland.
  • César Farías es el nuevo DT de Bolivia

    César Farías es el nuevo DT de Bolivia

    Al mismo tiempo, Farías continuará siendo entrenador de The Strongest con quien tiene contrato hasta diciembre del presente año.
    Cardi B deletes Instagram after row with Azealia

    Cardi B deletes Instagram after row with Azealia

    LOS ANGELES-Cardi B has deleted her Instagram account and set her Twitter to private after a row with Azealia Banks . She gives a brief overview of the 22nd Amendment. "Like, if my spelling and grammar was that bad, I'd be cancelled".
    Former Manchester City boss Roberto Mancini named new Italy manager

    Former Manchester City boss Roberto Mancini named new Italy manager

    Meanwhile NAIJ.com had earlier reported that Chelsea coach Antonio Conte was favourite to become the next national team coach . His first matches in charge will come against Saudi Arabia on May 28, France on June 1 and the Netherlands on June 4.


Popular

Rep. Don Bacon awaits challenge from Democratic opponent
Raybould defeated three Democratic challengers in Tuesday's primary race for the seat held by Republican Sen. Lincoln City Councilwoman Jane Raybould won the Democratic primary to try and unseat Republican Sen.

Asteroide perdido "2010 WC9" rozará la tierra este martes
El asteroide no es un peligro para la Tierra , aunque pasará muy cerca de ella. El '2010 WC9' , estará a 203.453 kilómetros de la Tierra .

OPCW confirms chlorine use in February attack in Syria
At the time, the White Helmets said three of its rescuers and six other people suffered breathing problems. The town has before come under suspected chemical attacks , including in 2016 and in 2013.

Famosa Youtuber "Lele Pons" remplaza a Jacqueline Bracamontes en La Voz… México
Gracias a mi equipo y gracias a Miguel Ángel por darme esta oportunidad", dijo". Tengan por seguro que los estaré siguiendo domingo a domingo.

¿Listos para ver el eclipse lunar más largo del siglo este verano?
La luna lucirá roja al reflejar los rayos del sol y con ello, se espera un hermoso espectáculo. El fenómeno será visible para los ciudadanos del Medio Oriente, África, India y Australia.

El tráiler de la nueva película de Lali Espósito
Dolores pasa dos años recluida en su casa mientras se prepara para el juicio y el cambio en Lali es impresionante. Acorralada por la evidencia, Dolores deberá enfrentarse a sus propias dudas sobre lo que verdaderamente ocurrió.

"A Boca le va a seguir doliendo la final" — Pity Martínez
Los cinco equipos clasificados son Boca , Godoy Cruz, San Lorenzo , Huracán y Talleres de Córdoba. Algo similar ocurría con el " Ciclón ", pero que se metió en la Libertadores 2019.

Chivas no comprará a Cota y ya negocia por dos refuerzos
Enseguida, el directivo revela que ya se trabaja en la búsqueda de dos refuerzos , aunque uno de ellos ya se los negó Tigres. Chivas atraviesa por una crisis financiera y le será imposible pagar lo que Pachuca pide por el portero Rodolfo Cota .

Britain's Got Talent
We have the best panel, the best hosts, and it's wonderful to make this show so thank you very much. 'WOOHOO! Thank you, BAFTA. The Britain's Got Talent production crew, judges, and hosts that attended the BAFTAS.

Buildings dismantled at North Korean nuclear test site
Given the stage it had already reached, Pyongyang "may feel like they don't need to test anything for a while", he said. North Korea's plan to close the site has been welcomed by Washington, Seoul and the United Nations secretary general.