Sunday, March 20, 2016

MBA Capital Limited Post On Tencent

Tencent Rips Advertising Page From Facebook

Online ads now make up nearly 20% of Chinese Internet company’s sales

The owner of China’s most popular social networks is moving a step forward in making money the Facebook way: advertising.
China’s Internet giant Tencent Holdings owns social networking services QQ, WeChat and Qzone, which all have more than 600 million of monthly active users. But until very recently, advertising contributed little to the company, unlike Facebook, which makes nearly all of its money from ads. Instead, Tencent’s major revenue source comes from user payments to play and enhance online games, which make up nearly half of its sales.

In the company’s results for last quarter, announced Wednesday, online games remained the biggest revenue contributor, growing 33% from a year ago. Total revenue for the whole company rose 45% last quarter to 30.4 billion yuan ($4.66 billion), a 10th higher than analysts’ estimates, according to S&P Global Market Intelligence. Adjusted earnings-per-share, up 28%, beat expectations only slightly, as costs rose.     READ MORE

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