Tencent shares ended the Asian trading session in the green after reporting record earnings in the first quarter of 2018. The Chinese tech giant’s impressive financials were largely supported by its WeChat social media platform.
Tencent shares closed 3.74% higher at HKD411.00. The stock had moved over 6% higher during the session.
Tencent earnings details
Tencent’s Q1 results included some strong growth figures. It said total revenues grew 48% from a year earlier to 73.528 billion yuan ($11.7 billion). Profit was up 61% at 23.29 billion yuan ($3.7 billion).
Elsewhere, online ad sales surged 55% in Q1 from a year earlier, while gaming revenue was up 26% over the same period. The China tech giant also reported its cloud revenue more than double, rising 111% in Q1 2018 from Q1 2017.
“In the first quarter of 2018, we launched the popular tactical tournament mobile games and enhanced the capabilities of widely-used services such as our Weixin Mini Programs, deepening engagement across our social, games and media platforms,” said Tencent CEO Mr. Ma Huateng.
“We drove adoption of our infrastructure services, seeing notable progress in areas such as mobile payment, cloud services, online financial services, and smart retail. We will continue to invest in improving our own products as well as enabling services for our partners,” Huateng added.
In app services
While the company results are a little short on the exact details of where the revenue comes from with regards its WeChat service, according to analysts, some of that revenue is driven by the services that are made available through the social media platform.
As Tencent’s CEO details in his comment, users are able to order food and taxis through WeChat. Meanwhile, the mini games platform that has been launched within the Chinese only version of WeChat – Weixin – allows users to access third party games.
Tencent’s own gaming library is also a significant contributor to its earnings. Honour of Kings is a hugely popular game that also supports in app purchases.
Indeed, WeChat achieved 1 billion average monthly users earlier in 2018, the first time the platform has hit that level.