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Tencent’s New Quarterly Results Show Strong Growth In Cloud Computing

Tencent Holdings recorded gross revenue of RMB35.691 billion (US$5.382 billion) during the second quarter, a 52% increase over the same period last year. Operating profit reached RMB14.329 billion (US$2.161 billion), a 43% year-on-year increase, the company's quarter results show.

Revenue from the company's value-added services is up 39% year-on-year, while revenue from online games increased by 32%, mainly contributed by player-versus-player games and role-play games.

Revenue from social networking platforms rose 57%, driven by virtual commodity sales and customized services.

Revenue from online advertising went up 60% year-on-year, which mainly reflects growth from advertisement income on WeChat, mobile news app and WeChat public accounts.

The brightest spot of the results is the so-called other businesses, which increased 275% compared to the same period last year, mostly driven by Tencent payment related service and cloud computing services.

During the quarter, Tencent merged its QQ music with China Music Corporation to expand its digital music business, betting on the future potential of China's music industry.

It also led a transaction to purchase global game developer Supercell to strengthen its position in mobile games.

Meanwhile, the company has made further efforts to invest in movies, television, and self-produced content to strengthen its entertainment content capabilities.

The number of Tencent QQ monthly active users reached 899 million and the number of WeChat's monthly active users was recorded at 806 million, a 34% increase compared to the same period last year.

Its popular WeChat mobiel app also made expanded further into corporate communication, with over 20 million registered corporate accounts.



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