Internet and mobile messaging services provider Tencent Holdings Ltd said on November 22 that its third-quarter earnings more than tripled due to strong growth of its Internet services and advertising revenue.
Shenzhen-based Tencent, which operates the popular "QQ" messaging service that has gained a wide following across China, recorded net profit of 282.6 million yuan ($36 million) in the third quarter of this year, versus 77.8 million yuan from a year earlier. Despite the growth, the company warned a more challenging business environment in the near future as its wireless business remains volatile due to policy risks and more strict account security measures could hurt its turnover from Internet value-added services.
Total revenue soared 103 percent from a year earlier to 736.9 million yuan in the July-to-September period, the company said.
Revenues from its Internet value-added services jumped 139 percent from a year earlier to 490 million yuan due to favourable seasonality in summer holidays, while online advertising revenue rose 132 percent to 80.4 million yuan.
Third quarter mobile value-added services revenue rose 36 percent from a year earlier to 165.3 million yuan. But it fell 7.3 percent from the previous quarter because of fee and subscription changes by the state parent of China Mobile that hurt user growth at the country's Internet firms.
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