Tencent says payment subsidy war set to continue after profit beat

Tencent Says Subsidy War with Alibaba Set to Continue After Beating Profits

That was buoyed by a one-time gain of nearly 7.6 billion yuan as the value of investments in arenas from video streaming to news content rose. The market had also anxious that Tencent's spending plans for its videos, artificial intelligence and mobile payments could hurt its margins. Since late March, the shares have seen a sharp reversal, losing about US$87 billion in value to leave Tencent with a market capitalisation of about US$480 billion. It's also secured Chinese distribution rights to some of the world's hottest games including PUBG and Fortnite, adapting some into mobile titles as more users spend time on smartphones. Gaming revenue was up 26%. That compares to the 17.4bn-yuan average of estimates compiled by Bloomberg. Revenue from smartphone games alone was up more than 68% compared to the same quarter in 2017 to just over 21.7 billion yuan with the help of titles like Honour of Kings.

Tencent, owner of the giant WeChat messaging and social network platform, has been opening its wallet to sustain growth as gaming from desktop gaming slows. Asia's largest company by market capitalization, Tencent reported $14 billion debt at the end of March, compared with $16 billion of cash at the same time past year.

The results were announced after the close of the Hong Kong stock market, where Tencent shares are traded.

Shares of Tencent, run by China's richest man, Ma Huateng (aka Pony Ma), rose more than 6% Wednesday thanks to the solid results.

Sherpa climbs Mount Everest for record 22nd time
Nepalese mountaineer Lhakpa Sherpa prepares to leave for an expedition to Everest in Kathmandu on April 18, 2018. His latest ascent took him one summit clear of two fellow Sherpas with whom he had shared the earlier record.

The overall online games business was boosted by two major games. The essay, written by veteran tech editor Pan Luan, claimed the company had "lost its dream" by becoming an investment company instead of continuing to develop great products in core areas such as search, e-commerce, information streaming, short video and cloud services.

Social networks revenues, including from Tencent's video and music business, increased by 47% to 18 billion yuan.

The social media company saw its monthly active users for its flagship WeChat app pass the 1-billion mark for the first time during the quarter, hitting 1.04 billion users worldwide by the end of March. However, in its earnings report for Q1 2018 released earlier today, Tencent laid all those fears to rest, smashing analyst expectations to post some of its highest ever revenue and profit increases, buoyed by a skyrocketing mobile games market. It has developed a mobile version of the former that is available globally, while it owns almost half of Epic Games, the developer of Fortnite.

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