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18-05-2017, 02:27 PM
Tencent Results Top Estimates After Scoring Breakout Hits
by Lulu Yilun Chen
May 17, 2017, 5:05 PM GMT+8 Updated on May 18, 2017, 9:53 AM GMT+8
Tencent Holdings Ltd.’s investments in blockbuster video and gaming content are paying off -- big-time.
China’s largest internet company posted record quarterly sales and profit that topped all analysts’ estimates as blockbuster titles including Honour of Kings drove a billion-plus users on WeChat and QQ to spend on game items. Chairman Pony Ma’s strategy of stockpiling rights to hit anime and novels and developing shows in-house is transforming the company into a hybrid Marvel Studios-Netflix style content factory.
Soaring growth at Tencent’s mobile gaming and advertisement units is buying the company time to develop new channels of revenue in finance and cloud, and bankrolling a foray into Hollywood. After backing “Kong: Skull Island,” the company is helping finance the upcoming summer tent-pole “Wonder Woman.” A market value of about $320 billion underscores how China’s online titans, including Alibaba Group Holding Ltd., are outstripping traditional state sectors and defying a slowdown in the world’s second-largest economy.
“It was a strong set of results,” said Li Yujie, an analyst at RHB Research Institute Sdn in Hong Kong. “Tencent’s mobile gaming business was the main contributor, especially Honour of Kings.”
More details in https://www.bloomberg.com/news/articles/...ive-growth
by Lulu Yilun Chen
May 17, 2017, 5:05 PM GMT+8 Updated on May 18, 2017, 9:53 AM GMT+8
Tencent Holdings Ltd.’s investments in blockbuster video and gaming content are paying off -- big-time.
China’s largest internet company posted record quarterly sales and profit that topped all analysts’ estimates as blockbuster titles including Honour of Kings drove a billion-plus users on WeChat and QQ to spend on game items. Chairman Pony Ma’s strategy of stockpiling rights to hit anime and novels and developing shows in-house is transforming the company into a hybrid Marvel Studios-Netflix style content factory.
Soaring growth at Tencent’s mobile gaming and advertisement units is buying the company time to develop new channels of revenue in finance and cloud, and bankrolling a foray into Hollywood. After backing “Kong: Skull Island,” the company is helping finance the upcoming summer tent-pole “Wonder Woman.” A market value of about $320 billion underscores how China’s online titans, including Alibaba Group Holding Ltd., are outstripping traditional state sectors and defying a slowdown in the world’s second-largest economy.
“It was a strong set of results,” said Li Yujie, an analyst at RHB Research Institute Sdn in Hong Kong. “Tencent’s mobile gaming business was the main contributor, especially Honour of Kings.”
More details in https://www.bloomberg.com/news/articles/...ive-growth
Specuvestor: Asset - Business - Structure.