profishingrods.com
profishingrods.com May 22, 2018


Tencent Sees Profit Increase of 61% Thanks to Games Business

17 May 2018, 09:33 | Joann Bryant

Tencent Sees Profit Increase of 61% Thanks to Games Business

Tencent Says Subsidy War with Alibaba Set to Continue After Beating Profits

There's an argument to be made for stripping out extraneous items because Tencent runs the games and social side of the business itself, but doesn't have direct control over investees. That was buoyed by a one-time gain of nearly 7.6 billion yuan as the value of investments in arenas from video streaming to news content rose.

The broader online game business was driven by two major hit games.

The company is investing in cloud computing, online entertainment and physical retail stores as it locks horns with Alibaba Group. The company owns the right to distribute "PlayerUnknown's Battlegrounds" and "Fortnite"-the two most popular titles in this genre-in China".

The gross profit margin in the quarter was more than 50 percent, higher than the 47 percent expected by analysts.

Daiwa Securities raised its target price for Tencent to HK$530 from HK$490 on what it said was "a stellar set of results". The stock has fallen 16 percent since a record close on January 23. Shares in Naspers Ltd., which as Tencent's top shareholder is often regarded as a proxy for the Chinese firm, rose 2.6 percent in early Wednesday trade. That compares to the 17.4bn-yuan average of estimates compiled by Bloomberg.

The results were announced after the close of the Hong Kong stock market, where Tencent shares are traded.




Tencent continues to draw the lion's share of its business from gaming, while counting on advertising and finance via WeChat to drive future growth. Revenue grew by 48% from the same period past year on the back of strong performance in its online advertising, gaming and messaging services.

Chinese Internet giant Tencent has confirmed that the number of active users on its multi-function messaging app WeChat surpassed one billion during the first quarter. The essay, written by veteran tech editor Pan Luan, claimed the company had "lost its dream" by becoming an investment company instead of continuing to develop great products in core areas such as search, e-commerce, information streaming, short video and cloud services. Another title - Honour of Kings - was the world's highest-grossing mobile game past year thanks to its China-based users and Tencent has been pushing it to worldwide audiences.

But overall costs surged 51 percent. Tencent executives have signaled a willingness to sacrifice margins in favor of longer term growth in new businesses, though that would depend on growing and engaging a massive user base now primarily confined to China.

Tencent Chairman and CEO Ma Huateng.

Fortnite is the other game that is driving a strong quarter.



Other News

Trending Now

Senate passes N9.1trn 2018 Budget
In his remark, Senator Lane Tejuoso, expressed delight over the consideration of the Senate to implement the National Health Act. The Nigerian Senate on Tuesday finally laid the 2018 appropriation bill after postponing it in the past two different times.

Eight GW Athletics Teams Recognized by NCAA With APR Public Recognition Award
The APR is an annual scorecard of academic achievement calculated for all Division I athletics teams across the country. The University of Arkansas has earned a public recognition award in 12 of the 13 years since the program was initiated.

Merkel: It is not right cancelling "nuclear deal" with Iran now
Members of the military alliance agreed to move towards spending two-percent of GDP on defense by 2024. The ambassador said, "No President has shown that to her before".

Samsung halts Galaxy S7 Oreo rollout in United Kingdom due to random reboots
Samsung Galaxy A6 and A6+ are expected to feature a similar spec-sheet with differences in display size, battery and rear camera. If you can't get to a Support Centre, you'll have to reset the phone using Recovery mode, which will wipe all your data.

DA Says California Dad Strangled, Shot With Crossbow & Waterboarded 10 Kids
But Rogers said the home was messy because she had been searching for her son who had run off after his computer was confiscated. Officers found spoiled food, as well as animal and human feces on the floor of the family's home. "Jonathan worships the devil".

Former world number one Pliskova smashes hole in umpire's chair
The world number six had a number of run-ins with Mrozinska during the heated encounter and now faces a heavy fine from the WTA. The chair umpire acknowledged that she "lost" the ball mark and therefore said the point should be awarded to Sakkari.

Deutsche Reconfirms Lonmin (LON:LMI)'s stock rating to "Hold".
Dixon Hubard Feinour & Brown Inc Va holds 0.06% of its portfolio in Western Asset Municipal Partners Fund Inc. for 14,650 shares. It operates through two divisions, Victrex Polymer Solutions and Invibio Biomaterial Solutions.The P/E ratio is 23.03.

Kent State graduate's gun-toting photo goes viral
Bennett's post was retweeted almost 3,000 times, liked more than 12,000 times, and had 1,600 comments as of Wednesday afternoon. A campus officer was with the group as well, as Bennett had notified the university of her intent to photograph with the rifle.

Nagaland BJP celebrates party's victory in Karnataka
For a party to form a government in the state, it needs a majority of 113 seats in the 224-member Assembly. This was aimed at keeping Lingayat votes intact with the BJP.

Arteta favourite to land Arsenal job
Patrick Vieira is on the shortlist for the Nantes job after falling down the pecking order in the race to become the new Arsenal manager.