Ten­cent re­sults top es­ti­mates af­ter scor­ing break­out hits

New Straits Times - - Business -

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

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