Tencent Holdings revenues soar 48 per cent

Revenues for Chinese internet value-added services provider Tencent Holdings grew by 48 per cent last year.

Total revenues reached RMB151.94 billion (US$21.9 billion), its audited consolidated results show.

Tencent’s operating profit was RMB56.117 billion, up 38 per cent over 2015, while its operating margin decreased from 39 to 37 per cent.

Profit for the year was RMB41.447 billion, an increase of 42 per cent, while net margin eased to 27 per cent from 28 per cent the previous year.

Its unaudited results for the fourth quarter show total revenues grew 44 per cent to RMB43.864 billion. Operating profit was RMB13.9 billion, up 28 per cent, while the operating margin fell from 36 to 32 per cent.

“During the year, Tencent achieved significant progress in a number of strategic initiatives to further strengthen our leadership, enrich our ecosystem and enhance our competitiveness,” says chairman/CEO Ma Huateng.

“We substantially increased the market share and daily transactions of our mobile payment services, and achieved rapid growth in commercial payment transactions.”

Technology investment

Looking ahead, he says the company will further implement its “Connection” strategy and also invest heavily in cutting-edge technologies such as security, cloud, big data and AI “so as to position us for the next wave of growth”.

Tencent surpassed 600 million mobile payment monthly active user accounts and average daily payment transactions in December.

“Our payment-related services provide a fast and seamless experience for a widening range of offline scenarios such as taxi booking, convenience stores, restaurants and supermarkets,” says Huateng.

“We drove merchant adoption by working with acquiring agencies and simplifying on-boarding procedures.”

He says the group’s fast-growing commercial payment transaction volume is diversifying from large online merchants to a broad range of offline merchants.

“Our robust payment infrastructure, which made continuous improvements in payment security, service reliability and transaction speed, enabled us to process peak volume of 760,000 red packets a second during the Lunar New Year.”

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