Tencent Q3 net profit up 32% as mobile payment presence grows

Baidu Music censorship

The strong results helped ease concerns over intensifying competition in China’s smartphone-games market. Online games revenues rose 27 percent year-on-year to CNY 14.3 billion.

Tencent reported Q3 revenue of 26.6 billion yuan, about $4.18 billion, up 34% year over year and topping the consensus estimate by almost 5%.

In China’s slowing economy, billionaire Ma Huateng is finding growth by supplying cheap entertainment to the masses. Revenue in the firm’s value-added services category grew 28 percent on year to 20.55 billion yuan, boosted by new smartphone and personal computer games as well as social network income.

This year, Tencent has been stepping up its efforts to earn more revenue from advertising. Analysts expect mobile advertising to become a new revenue engine for the company in coming years.

After struggling to compete with Alibaba in e-commerce, Tencent folded its online retail assets into a venture with JD.com to create a stronger second-ranked operator.

From Jan 1, companies offering online music should police content before making it available, the Ministry of Culture said on its website. “It has significant monetisation potential from mobile advertising and mobile gaming”. Its third-quarter report Tuesday morning showed the best revenue growth in five quarters amid a doubling of online ad sales, though profit fell short of views. “We also saw a sharp increase in mobile payments”.

Weixin Pay, the name for WeChat’s payments platform, and QQ Wallet now have more than 200 million accounts linked to bank cards as more customers use the service for money transfers. It is why many companies are also starting to turn towards China where the markets are still developing, versus the Western markets in which the markets for certain products such as smartphones has matured.

The company bolstered its content further on Friday, adding the exclusive online rights in China for the complete James Bond franchise from Metro-Goldwyn-Mayer Studios Inc.

While such deals may not translate into revenue for the short term, entertainment programs entice users to spend more time on Tencent platforms.

A pedestrian passes an advertisement for the Tmall 11.11 online shopping festival at a subway station in Shanghai.

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