China’s Tencent to ramp up cloud and payments businesses after reporting 43pc profit growth
Chinese internet powerhouse Tencent Holdings is looking to ramp up its cloud and payments businesses after reporting a lower-than-expected quarterly profit for the three months to September 30 as spending on content and marketing increased ahead of its 18th year anniversary.
That fell short of the estimated 11.68 billion yuan from a consensus forecast of analysts surveyed by Bloomberg, as the company boosted spending on content and marketing during the period.
Total revenue climbed 52 per cent to 40.39 billion yuan from 26.59 billion yuan a year earlier, ahead of the consensus estimate of 39.02 billion yuan.
Tencent chairman and chief executive Pony Ma Huateng said in a statement that the company’s mobile games and advertising businesses had “above industry year-on-year revenue growth rates and continued to generate healthy margins”.
We have sought to enrich the lives of users through technology
“For key infrastructure platforms supporting our ecosystem, specifically payment and cloud services, we saw significant progress in adoption and usage. We will continue to invest in these strategic areas,” Ma said in a conference call with analysts and journalists.