Tencent announces positive quarter results boosted by mobile gaming and advertising business
Tencent Holdings Ltd, the Chinese internet company, presented positive revenue growth for Q3 2016. Net profits increased by 43% to $1.55bn on the back of its mobile gaming and mobile advertising business. Revenue climbed 52%.
Tencent announces net profit increase of 43%
The company that generates a large chunk of its revenue by distributing games and ads through its messaging apps WeChat and QQ is also hard at work trying to expand the business via acquisitions. In October 2016, the firm acquired Supercell Oy, the Finnish game creator, in a deal worth $8.6bn.
WeChat remains to be one of the core apps for Tencent with 846m monthly active users, up from 806m in June.
During the reporting period, Tencent’s smartphone gaming revenue grew 87%. Overall, mobile and desktop gaming revenue grew 27% during the same quarter.
Although games make up roughly half of Tencent’s overall revenue, mobile advertising is also big business for the company being one of its core revenue drivers.
Tencent ad revenue rose 15% during the third quarter.