Tencent Holdings Ltd, China's biggest online chat-service provider, reported third-quarter profit rose 73 percent after new online game titles helped it add customers and the Beijing Olympics boosted advertising sales.
Net income rose to 737.1 million yuan (US$108 million), from 426.4 million yuan a year earlier, while sales almost doubled to 2.02 billion yuan, the company said yesterday in a statement to Hong Kong's stock exchange. Profit and revenue beat the median estimates in a Bloomberg News survey of five analysts.
Billionaire Chief Executive Officer Ma Huateng lured more users of Tencent's QQ messaging service to play its online games by introducing Web titles such as "Dungeon and Fighter." Companies, including Dell Inc, also bought more advertisements on the Shenzhen, south China-based company's Website during the Beijing Olympics.
"Games are key growth drivers in the second half and even 2009," said Wallace Cheung, an analyst at Credit Suisse Group AG. The QQ messaging site is "an effective marketing platform for games."
The Internet company's shares fell 0.2 percent to close at HK$51 (US$6.60) in Hong Kong before the earnings release. They've dropped 14 percent this year, compared with a 50-percent decline for the city's benchmark Hang Seng Index.
Third-quarter sales of Internet value-added services, including online games and QQ-related subscription fees, almost doubled to 1.4 billion yuan, Tencent said. Online ad sales rose 72 percent to 249.1 million yuan.
"Growth in our online advertising business will inevitably slow down in an economic downturn," Tencent said in the statement.
(Shanghai Daily November 13, 2008)
