Tencent Revenue Growth Strong, But Adjusted Earnings Miss
17 May, 2018, 09:31 | Author: Arnold Perez
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.
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.
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.
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.
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.
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.
El equipo económico de legisladores de la oposición dio a conocer nuevos datos de la inflación medida en los últimos meses. El ministro enfatizó que el proceso de "desinflación continuará en cuanto se calmen los mercados".
Of course, as TNW points out, these types of features can already be installed on basically any smartphone already on the market. Honestly, I would find it extremely paradoxical if HTC didn't accept cryptocurrency for its blockchain-powered phone.
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.
Senate Approves Measure Protecting Net Neutrality
The FCC's new anti-net-neutrality regulation, set to take effect next month, eliminates those prohibitions. And if you're still confused by this whole net neutrality debate thing, we've got you covered here.
Neymar fue distinguido como el mejor jugador del año
La ceremonia, que comenzará este domingo a las 19:00 hora GMT, se celebrará en el pabellón de Armenonville, en el oeste de París. Emery ha ganado con el club parisino los cuatro torneos disputados en Francia: Liga, Copa, Copa de la Liga y Supercopa.
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.
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).
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 .
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".
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.