Tencent

Chinese Internet behemoth Tenent has had another good year. The company has announced its results for Q4, 2016. The company also took the occasion to announce results for fiscal 2016. Online gaming, advertising and social networks combined to give Tencent another year of robust growth. The results released yesterday were audited for the fiscal 2016 and were un-audited for the fourth quarter.

As per the report, Tencent reported a total profit of RMB 41.45 billion (US$6 billion) for 2016. This was an increase of almost 42 per cent from 2015. On revenue of RMB 151.94 billion (or US$22 billion). Statistically speaking, that was an increase of almost 48 percent over last year.

Value added services also played a key role in  the revenue generated. In case you are unaware of it, Value added services refer to a broad spectrum that encompasses  online games and social networks and a slew of other services. Most of the advertising revenue for instant, came from WeChat Moments, and the WeChat official accounts. A portion also came from the company’s mobile media advertising. Others revenue sources included the company’s payment-related services and cloud services.

All of the sectors Tencent operates in performed reasonably, and in some cases extraordinarily well — leading to an overall good showing on the company’s part. Revenue from games for instance, rose almost 25 per cent to reach RMB70.84 billion (US$10 billion). That was almost half of Tencent’s total 2016 revenue and also served to make the company the largest representing 47 per cent of the internet behemoth’s 2016 revenue.

The company did fell marginally short of a Thomson Reuters poll estimate of 11.75 billion yuan. However, that did not keep it from being an analyst favorite and most of them gave its stock a buy rating. This was in part thanks to the strong potential in Internet payments and due the strong growth exhibited by the online gaming niche. With 110 and counting launched titles, online games revenues grew by 16 percent annually and managed to reach 18.47 billion yuan. This was  mostly due to Tencent’s player-vs-player and role-playing smartphone games, a list that includes ‘Honors of Kings.’ It seems as if  analyst expect the growth to continue.

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