Tencent talks tall on growth in the online services market Tencent Holdings, the Shenzhen-based internet and mobile services provider, said it was likely to increase its charges after recording growing traffic on its portal over the third quarter. The company told analysts yesterday that China's online games and messaging sector was improving and it was looking to introduce licensed games on to its platform. The main board-listed company said for the three months to September, traffic to its QQ.com portal increased more than 50 per cent. The company charges 10 yuan per month for services such as online dating and internet services over its instant messaging platform. At the end of September, QQ's internet-based paid subscriptions were 10.1 million, up 7.4 per cent from June this year. Paid subscriptions for its mobile value-added services, however, dropped by 8.7 per cent to 8.4 million over the same period. Meanwhile, revenue from mobile and telephone services dropped 11.2 per cent from the second quarter to 121.2 million yuan in the third due to the temporary suspension of interactive voice response services. Internet value-added services, which contribute 56.4 per cent of total revenue, rose 20.5 per cent to 204.7 million yuan. For the three months to September, net profit dropped 26.9 per cent to 77.8 million yuan, lower than the 118 million yuan expected by analysts. Tencent said the drop was caused by a 42.4 million yuan foreign exchange loss due to the revaluation of the yuan implemented in July. Net profit rose 11.36 per cent over the first nine months to 361.68 million yuan from 324.78 million yuan a year ago. Revenue for the same period was 996.97 million yuan, up 20.25 per cent from 829.05 million yuan a year ago. Management yesterday said the firm would spend up to US$30 million to buy back shares before its next annual general meeting in May, citing the need to 'enhance shareholder value'.