Tencent Revenues Jump 54%
Mar 21st 2013 6:01PM
Updated Mar 21st 2013 6:06PM
Chinese Internet service provider Tencent raked in nearly $7 billion in 2012 revenues, an increase of 54% over 2011, the company reported yesterday.
Broken down, revenues from internet value-added services ("IVAS," essentially the company's games business) saw an increase of 39%, to over $5 billion. Mobile & telecommunications ("MVAS") -- which include the company's mobile games and popular WeChat service -- saw an increase of 14%, to $592 million. Profit for the year amounted to a little over $2 billion, an increase of 25% year over year.
Quarter over quarter, Q4 revenues increased only slightly, by 5%, to $1.9 billion. IVAS revenues increased 1%, to $1.3 billion. Revenues from MVAS were $150 million, a decrease of 1%. Profit for the company increased by 7%, to $550 million.
Looking forward, Tencent has three key focuses for 2013. First, the company will continue to extend its social communication platfroms from PC to smartphones through applications like Wireless QQ and WeChat. Second, they are investing in mobile security software and mobile browser services. Finally, Tencent plans to better tailor its advertising to the right users at the right time.
From the first quarter of 2013 and onwards, Tencent will merge IVAS and MVAS together in an effort to "better [reflect] current market trends" and "future business developments."
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