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Tencent seeks earnings from games

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SCMP Reporter

Tencent Holdings will focus on game offerings and diversify into the internet auction market to strengthen profitability next year, according to chief executive Pony Ma Huateng.

The company's gross profits for the present quarter would remain flat, however.

The Shenzhen-based company hoped to roll out at least one new, 'casual' online game each month, a mid-sized game such as Monopoly every three months, and one full-sized role-playing game every nine months.

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It has 19 casual games and one mid-sized game at present and expects to launch its first substantial role-playing game in the final quarter of next year.

Tencent, which operates the instant-messaging service QQ, has attracted 930,000 concurrent users to its game portal QQ Game this month.

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The company reported third-quarter profits of 107.97 million yuan on sales of 300.98 million yuan. Gross profit margin dropped to 61.9 per cent from 62.97 per cent in the second quarter.

Mr Ma said the company would design the games itself rather than license them from overseas players.

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