Mainland Internet wave lifts Tencent's Q1 earnings by 84%
Updated: 2008-05-15 07:18
By Hui Ching-hoo(HK Edition)
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The mainland's largest instant messaging service provider, Tencent Holdings, booked an 84 percent gain in its first-quarter net profits to 534 million yuan thanks to the mainland's prosperous online industry.
Last year, the company net 290 million yuan in the first quarter.
This year, the total exceeded the 424 million yuan market estimate.
Its Internet value-added revenues for the first quarter were 988.7 million yuan, up 99 percent year-on-year, while the mobile and telecommunication value-added revenue hit 288.3 million yuan, a 46.7 percent year-on-year jump.
Online advertising revenue increased 95.2 percent, year-on-year, to 144.6 million yuan.
Looking ahead this year, Tencent Chairman Ma Huateng said the company will develop its core businesses, such as online games and network advertising.
"The proportion of the online gaming segment will further expand," Ma said, adding that the company will contemplate exploring new areas such as e-mail services and search engines.
But he stressed that the company is unlikely to get involved in business-to-business (B2B) electronic services.
Ma said that the company is actively looking for acquisition opportunities, and some online game operators in emerging markets are under their radar.
Regarding the impact of the Sichuan earthquake on the company, Ma said some of its customer service centers in the affected areas were forced to close.
Operations were diverted to centers in neighboring regions, and more manpower has been brought in.
Ma said the company currently has no set timetable in making an IPO offer in the A-share market, but he noted that an A-share listing is a long-term goal for the company.
Tencent will join the Hang Seng Index as one of two new constituents on June 10.
(HK Edition 05/15/2008 page2)