Many had thought that Tencent was not going to improve, however, they proved everyone wrong with their 3rd quarter earnings results. The company has improved by 34% in the third quarter, more than they have improved in the past five quarters. For the months of July to September, the company saw a revenue of $4.18 billion or 26.59 billion yuan. Experts had estimated that the company would only earn 25.26 billion yuan.
Why Tencent Improved?
Tencent has stated that their improvement was mostly due to an increase in their advertising revenue. They were able to increase their advertiser base. WeChat was one of the companies that really increased their advertising techniques. And from this WeChat saw an increase in users by 39% within one year. In addition, Tencent’s QQ social network option saw 639 million users.
The company stated:
“Our social networks revenues expanded, reflecting increased contributions from both subscription services and in-game item sales within our mobile social network platforms.”
In addition, the firm stated that the increase in new smartphones coupled with PC games helped to drive their social network revenue.
Tencent is considered the leading social network and online entertainment firm throughout China. They offer not only games via smartphones and PC’s, but social networks that offer Chinese consumer more platforms to choose from. WeChat and QQ are two of the most popular options that the firm offers to Chinese consumers.
The company was founded in 1998 with the mission to ensure that Chinese consumers have a way to have a rich internet experience, and connect with others in which they may have interests in common with. Other internet platforms that the company offers are QQ Games, Qzone, 3g.QQ.com, Soso, PaiPai and Tenpay. The company also has its own charity fund called Tencent Charity Fund whose main goal is youth education, to assist impoverished communities, disaster relief and to care for those who are at a disadvantage in life.