Tencent Revenues Jump on Social, Gaming Growth in Latest Quarter
Much as in its earnings report from the last quarter of 2014, Chinese web giant Tencent has reported strong first-quarter earnings on the basis of its mobile games and social networking platforms, as well as its much-used QQ messaging platform.
The company reported total revenues of $3.64 billion, a 22 percent increase year-over-year, with operating profits of $1.52 billion, a 20 percent increase over Q1 2014. Net profit margins decreased to 31 percent from 35 percent.
As reported last month, the company broke the $200 billion valuation ceiling, joining Apple, Google, Facebook and Chinese rival Alibaba.
In a statement Ma Huateng, CEO and chairman (who made Forbes' annual 'richest' list in March) says of the report: "Our key mobile properties extended their leadership in China and continued to broaden user activities from social and communications to gaming, entertainment, media content, payment, and beyond. Looking ahead, we aim to bring further... benefits to users through... collaboration with a broad range of partners."
Tencent has struck partnerships with both Sony Music Entertainment and Warner Music Group to oversee digital distribution of the two majors' catalogs in the country. (Disclosure: The company has also struck content deals with Billboard and The Hollywood Reporter to distribute those publications' content in the country.) The company also has a similar deal with Korea's YG Entertainment, home of Psy. In March, BMG struck a similar deal with Alibaba, Tencent's chief competitor.