Tencent results top estimates after scoring breakout hits
Hong Kong: Tencent Holdings Ltd’s investments in blockbuster video and gaming content are paying off — big-time.
China’s largest Internet firm posted record quarterly sales and profit that topped all analysts’ estimates as blockbuster titles, including “Honour of Kings”, drove a billion-plus users on WeChat and QQ to spend on game items.
Chairman Pony Ma’s strategy of stockpiling rights to hit anime and novels and developing shows in-house is transforming the firm into a hybrid Marvel Studios-Netflix-style content factory.
Soaring growth at Tencent’s mobile gaming and advertisement units is buying the company time to develop new channels of revenue in finance and cloud, and bankrolling a foray into Hollywood.
After backing “Kong: Skull Island,” the company is helping finance the upcoming summer tent-pole “Wonder Woman”.
A market value of about US$320 billion (RM1.39 trillion) underscores how China’s online titans, including Alibaba Group Holding Ltd, are outstripping traditional state sectors and defying a slowdown in the world’s secondlargest economy. Bloomberg