Tencent Holdings Ltd. profit rose 25% to a better-than-expected 7.31 billion yuan ($1.1 billion) in the second quarter.
Here are some key numbers:
Revenue: 23.4 billion yuan
That’s 19% more than a year earlier, and less than the 24 billion yuan average of 16 analyst estimates compiled by Bloomberg News. It was also Tencent’s slowest growth on record. The company has averaged roughly 30% revenue increases in each of the previous five quarters.
Advertising revenue: 4.1 billion yuan
That’s more than the 3.9 billion yuan average of analyst estimates, which ranged from 3.2 billion yuan to 4.4 billion yuan.
Online advertising sales almost doubled, boosted by higher- cost video advertising linked to popular shows like The Voice of China and NBA basketball games.
WeChat has added more ads in its “Moments” section, a Facebook-like feature where users post photos and status updates.
Online games revenue: 13 billion yuan
Sales from online games jumped 17%, roughly in line with the 13.5 billion yuan average of analyst estimates.
Mobile games revenue: 4.5 billion yuan
Sales from smartphone and tablet games climbed 11% on a gross-to-gross basis. The company is adding card and action games to try and attract more paying users.
The company has bought stakes in CJ Games Corp. and Glu Mobile Inc., the creator of an app featuring reality TV star Kim Kardashian.
Monthly active users: 600 million
Users of the company’s WeChat messaging application rose 9.2% from the previous quarter. The app, known as Weixin in China, is Tencent’s main platform for social media, gaming and advertising.
JSE-listed Naspers owns a stake in Tencent.