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74 Per Cent Y-O-Y Increase In Net Profits For Tencent In 2017


03/21/2018


74 Per Cent Y-O-Y Increase In Net Profits For Tencent In 2017
Chinese tech giant Tencent has increased its profits for 2017 by 74 per cent compared to the profits it made the year earlier. According to the company statement released on Wednesday, the tech giant attributed the significant increase in profits to "solid growth" throughout all of its components of its core businesses.
 
According to a report on its website, 71.5 billion yuan (about 10.9 billion U.S. dollars) is the total amount of profits that the company made in 2017 which is attributable to its shareholders. 
 
"We continued to achieve solid growth across core business segments," the company said. The business segments of the company that marked a continued and steady rate of growth included its online games, cloud-based computing services, advertising and its digital content services.
 
In fiscal 2017, the company generated total revenues of 237.76 billion yuan which was a rise of 56 per cent compared to the year earlier.
 
There was an increase of 59 per cent in the revenues for the smartphone games segment of the company to reach v while there was a 13 per cent rise in the revenues generated from the PC games segment of the company to reach a total of 12.8 billion yuan.
 
There was a 22 per cent year on year rise in the revenues the company generated form its fee-based value-added service subscriptions reach 135 million. The company said that business components video and music streaming services were the drivers for the growth in this business segment of the company.
 
"In 2017, Tencent made important strategic moves that reinforced our leadership," said Ma Huateng, chairman and CEO of Tencent while referring to the market leadership position of the company in the video services segment which saw the highest number of mobile daily active users as well as monthly subscriptions within the industry.
 
"Looking forward, we are substantially increasing our investment in areas including video, payment, cloud, AI technology and smart retail, which will impact our near term earnings but which we believe can generate long term value and growth opportunities," Ma said.
 
However, in 2017, the company also reported a drop of 9.8 per cent compared to the year earlier in the number of monthly active user accounts of QQ – the instant messaging product of the company. On the other hand, there was 11.2 per cent increase in the monthly active user accounts of Weixin and WeChat added together which touched 989 million.
 
There was however a drop of 0.86 per cent in the shares of the company at Hong Kong’s stock exchange on Wednesday. However, with a total market valuation of 4.39 trillion Hong Kong dollars (about 560 billion U.S. dollars), as on Wednesday, Tencent recorded a market capitalization higher than that of the approximately 488 billion U.S. dollars of Facebook.
 
(Source:www.xinhuanet.com)


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