Tencent’s blowout Q2 draws attention away from rival Alibaba

By | August 13, 2014

Scalper1 News

As China e-commerce giant Alibaba prepares for its highly anticipated U.S. IPO, another Chinese Internet company, Tencent, is stealing some of its thunder. Tencent (TCEHY) owns a portfolio of Internet services including social networks, Web portals, online games and e-commerce sites. The Shenzhen-based company on Wednesday reported second-quarter profit growth of 59% year over year, which easily beat analyst expectations, Reuters reported. Tencent posted net income of 5.84 billion yuan ($949 million) compared with the consensus forecast of 5.73 billion yuan. Tencent (TCEHY) credited surging revenue from smartphone games for its breakneck growth. It markets the games through its mobile messaging apps Mobile QQ and WeChat, known in China as Weixin. Mobile games accounted for 56% of Tencent’s total revenue of 19.75 billion yuan ($3.21 billion) in Q2. Overall revenue rose 37%. Its gross profit margin increased to 62% from 58% in Q1. Tencent is Alibaba’s biggest rival in China…. Scalper1 News

Scalper1 News