Invite colleagues
Chinese online game and instant messaging company Tencent has published its unaudited financial report for the third quarter of 2009. According to the report, Tencent's revenue during the third quarter was CNY3.369 billion, a year-on-year increase of 66.4% and an increase of 17% over the previous quarter; and its net profit was CNY1.42 billion, a year-on-year increase of 92.6% and an increase of 19.1% compared with the second quarter of 2009.
As an observer in the Chinese Internet space, I was surprised at the size of the increases reported by Tencent. It is important to look at the make up of the overall revenues as this will give a better sense of the business. Of the total revenue, CNY2.623 billion was from its Internet value-added services, a year-on-year increase of 87.3% and a quarter-over-quarter increase of 21.6%; CNY446.2 million was from mobile and telecom value-added services, a year-on-year increase of 19.8% but a quarter-over-quarter decrease of 5.1%; and CNY293.6 million was from Internet advertising business, a year-on-year increase of 17.9% and a quarter-over-quarter increase of 20.8%. (Note: The advertising number shows that this sector is still robust even in the face of a global downturn)
The release also revealed Tencent's major operating statistics (by September 30, 2009):
- The number of users of its QQ instant messaging service had reached 1.057 billion
- The number of active QQ users was 484.9 million
- The number of users who use Tencent's paid Internet value-added services monthly package was 47.9 million
- The number of users who use its paid mobile and telecom value-added services monthly package was 17.7 million
So great to see Tencent come in with such a strong quarter. Well done. I also expect that once their 'new' search engine becomes fully operational that their ad revenues will increase further.
Source: Tencent Press Release
Written on Sunday, 15 November 2009 10:36 by Matt McDougall