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Bloomberg

Tencent Holdings climbed to a record in New York as Asia's second-largest internet company started advertising on its WeChat mobile messaging platform, spurring optimism it will diversify its revenue sources.
 Tencent's American depositary receipts rose 3.5 per cent to US$17.68, the highest close since 2008,  on Monday. The ADRs have jumped 22 per cent this month, on track for the largest monthly advance since April 2009.
 Tencent's shares closed 0.73 per cent lower at HK$136 yesterday. 
 WeChat, one of the most popular social messaging services on the mainland, with about 468 million monthly users, started to display advertisements on its Moments information-sharing platform, 86Research said in a note on Monday. 
Shenzhen-based Tencent is looking to grow advertising revenue from its free mobile apps as it reduces its reliance on online games, which  bring in nearly 60 per cent of its  total sales.
 It was possible that "investors are considering this a significant positive for the stock in the sense that monetisation is happening", said Di Zhou, an associate portfolio manager at Thornburg Investment Management. "Similar to Facebook, this could be a meaningful revenue contributor."
 Facebook's share of the global mobile advertising market is estimated to have risen to 20 per cent last year  from 5 per cent in 2012, according to research firm EMarketer.
 Tencent's mobile advertisements were forecast to contribute 10 billion yuan (HK$12.4 billion) a year "once the services are on track", said Juan Lin, a Shanghai-based analyst at 86Research.
Jeff Papp, a senior analyst at Oberweis Asset Management, said Tencent's "mobile business hasn't really been monetised at all, so the ads are a beginning foray".
"Showing the possibility of making profit on mobile is a strong sign," he said. 


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Advertising move pushes Tencent ADRs to record high

Tencent Holdings is looking to grow advertising revenue from its free mobile apps. Photo: Reuters

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