Tencent eyes more partnerships as mobile users continue to grow

Chinese internet powerhouse Tencent is looking to widen the scope of its strategic alliances, after posting solid first-quarter earnings on the back of increased online game and advertising revenue.

Chairman and chief executive Pony Ma Huateng said yesterday Tencent's "internet plus" strategy of connecting users with services in various industries would involve "collaboration with a broad range of partners".

Citing that initiative's impact on the company's first-quarter performance, Ma said: "Our key mobile properties extended their leadership in China and continued to broaden user activities from social and communications to gaming, entertainment, media content, payment and beyond."

Shenzhen-based Tencent, Asia's second-largest internet company after Alibaba, yesterday reported a 7 per cent increase in net profit for the first three months of the year to 6.883 billion yuan (HK$8.723 billion), up from 6.457 billion yuan a year earlier. That beat the 6.7 billion yuan average of analysts' estimates compiled by Bloomberg.

Total revenue rose 22 per cent to 22.399 billion yuan, from 18.4 billion yuan the previous year. That was higher than the 22.01 billion yuan average forecast from a Thomson Reuters Smart Estimate poll of analysts.

Online game revenue advanced 29 per cent year on year to 18.626 billion yuan last quarter, driven by smartphone games demand. Online adverting revenue grew 131 per cent to 2.724 billion yuan.