Tencent Holdings reported a 47%t rise in net profit for the second quarter, which exceeded analysts’ expectations after revenues from mobile games of the Chinese Internet giant have risen more than twice, according to The Wall Street Journal.
The company that manages the mobile messaging app WeChat, said on Wednesday that its net profit for the three months ended the end of June rose to 10.73 billion yuan (1.61 billion dollars) from 7.31 billion yuan ago year. Revenues increased by 52% to 35.69 billion yuan (5.37 billion dollars) from 23.43 billion yuan for the same period last year.
The results are well above analyst estimates. Nine analysts polled by Thomson Reuters expected growth of 34% in net profit and 42% of revenues for the quarter.
Tencent has generated more than half of its revenue from games on its two major social platforms – WeChat and the other messaging application QQ, as well as its own application store. In the second quarter, its revenue from games for smartphones rose more than double to 9.6 billion yuan from 4.5 billion yuan last year, the company said.
In the last year, Tencent increased its revenue from ads, including those that are seen in the history of WeChat like sponsored posts in Facebook.
In the second quarter advertising revenue of the Chinese company jumped by 60% to 6.53 billion yuan.
WeChat and QQ of Tencent play significant roles in generating traffic in operations, which earn money such as games and advertising. As of June WeChat has 806 million monthly active users worldwide compared to 762 million in March, the company said. Users of mobile application QQ increased slightly to 667 million from 658 million people.