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        Tencent Holdings first quarter net profit rose 58% over expected


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China Internet giant - Tencent Holdings (0700.HK) announced Wednesday that net profit rose 58% in the first quarter of this year, better than market expectations, mainly by online games, payment related services, digital content and online advertising.

Tencent announced after the close of Hong Kong stocks, as of the end of the three months net profit of 14.476 billion yuan, compared with 9.183 billion yuan last year; its first quarter results than Thomson Reuters SmartEstimate integrated seven analysts forecast an average of 12.83 billion yuan for good.

During the period, the company's revenue rose 55% year on year to about 49.552 billion yuan, up 13% quarter by quarter. Value-added services and online advertising continue to be the company's main source of revenue contribution. It is noteworthy that the first quarter of the company's other income rose 2.24 times the proportion of total revenue significantly increased to 15%, compared with only 7% over the same period last year. The company pointed out that this was driven by payment-related services and cloud services.

Accounting for 51% of the revenue share of Tencent revenue, in the first quarter recorded a 41% increase; which online game business revenue increased 34% to 22.811 billion yuan, mainly reflected in the growth from the smart phone games (such as "King glory" and "Dragon Valley ") And personal computer client games (such as" Heroes Union "and" Dungeons & Fighters ") revenue growth. Social network revenue grew 56% to $ 12.297 billion, mainly reflecting the growth in sales of digital content services (including digital music, video and literature services) and virtual props.

As for the online advertising business revenue increased by 47% to 6.888 billion yuan, accounting for the proportion of total revenue year by year by a percentage point to 14%.

The first quarter of this year, Tencent's WeChat and WeChat consolidated monthly active account year on year and the chain were increased by 23% and 5.5%; QQ monthly active account year on year and the chain were reduced by 1.9% and 0.9%.


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