Tencent Holding Ltd. (OTCMKTS:TCEHY) a provider firm of Internet value added offerings in China, reported the unaudited consolidated report for 3Q2016. Total revenues came at RMB40,388 million, a jump of 40% YoY. Operating margin came at 36% compared to 39% last year.
The highlights
Tencent Holding reported that profit in 3Q2016 came at RMB10,776 million, a jump of 42% YoY. However, net margin came at 27% compared to 29% last year. Profit attributable to equity holders for the reported period came at RMB10,646 million, a jump of 43% YoY. Basic EPS came at RMB1.134 while diluted EPS was RMB1.121. On a non-GAAP basis, discounting share-based compensation, net losses/(gains) from investee firms, impairment provision and amortization of intangible assets.
Operating profit came at RMB15,037 million, a growth of 43% YoY whereas operating margin dropped to 37% from 40% over the last year. Profit in 3Q2016 came at RMB11,929 million, a jump of 41% YoY while net margin dropped to 30% from 32% over the last year.
The management speaks
Ma Huateng, the CEO and Chairman of Tencent, said that in 3Q2016 they recorded strong financial performance from its core businesses. Particularly, the social performance advertising operations and smart phone games segment posted above-industry revenue growth and continued to record healthy margins. In the meantime, the ecosystem infrastructure services including cloud-based and online payment services witnessed considerable progress in usage and adoption.
Additionally, this month registers a considerable milestone for Tencent as they celebrated the anniversary of firm founding on November 11. Reflecting on last 18 years, Tencent commenced by connecting people through its first messaging platform, and since then, it has sought to improve the users’ lives through technology, encouraging them to expand from social networking to communications, digital entertainment, digital media and a pioneering payments and technology infrastructure.
This journey became a success with the support of firm’s users, business associates, and in particular, colleagues. Tencent is deeply grateful to all of them for turning its vision into the firm where it is today.
