Tencent still has finger on China’s impulse to play
Hong Kong — Tencent Holdings, in which Naspers owns a 34% interest, has posted a 43% rise in third-quarter profit as its consistent ability to attract Chinese gamers and social media mavens fuelled advertising growth despite growing competition. Net income had climbed to 10.6-billion yuan ($1.5bn) in the three months to end-September, the Shenzhen-based company said on Wednesday. That figure just missed average analyst expectations compiled by Bloomberg of 10.7-billion yuan. Tencent’s bottom line depends on effectively engaging a Chinese internet population, now 710-million strong. Advertising has become a major source of sales growth as it lures brands onto its WeChat and QQ messaging services. Tencent has also been scooping up video content and fleshing out its mobile games slate, adding hits while acquiring Clash of Clans studio Supercell. Revenue from smartphone games surged 87% to 9.9-billion yuan. "Mobile game revenue was stronger than the street expected," said Li Muzhi, a Ho...
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