Culture&Arts

Here's how: Chinese tech titan adds $34bn to its market value

Here's how: Chinese tech titan adds $34bn to its market value

Tencent did appear to beat forecasts for net profit.

Before the release of the first-quarter report, there had been concerns in the market about a potential slowdown in Tencent's online game income growth.

A major contributor to the bottomline was investments by Tencent, which brought in 7.6 billion yuan in gains.

Its latest results soothed fears that outsized spending would hammer profitability. It's also secured Chinese distribution rights to some of the world's hottest games, from PlayerUnknown's Battlegrounds to Fortnite, adapting them to draw in smartphone users.

The social media and gaming firm had posted on Wednesday better-than-expected net profit and gross profit margin for the first quarter, driven by the strong performance of its mobile gaming business and gains in its sprawling investment operations.

Tencent's ADRs surged 6.8 percent in US trading after earnings were released.

Still, shares of the company are still over 12 percent lower from the record high hit in January. Not only can this add to the moat and diversity of Tencent's operations, emerging rivals can also be turned into members of the group at an early stage. Analysts tracked by Thomson Reuters have a mean price target of 513.41 Hong Kong dollars, representing a more than 23 percent rise from Thursday's trading price. But adjusted earnings-per-share, which strips out one-time items, came to 1.92 yuan, missing the 1.94 yuan average estimate.

More news: Ocado to enter U.S. market with 'transformative' Kroger deal

Hong Kong - Tencent Holdings is silencing the sceptics.

Tencent has historically done well in the games space with the PC its cash cow, but previous year its smartphone games business overtook that of PC based on revenue. The company announced that had seen growth in the double digits related to the number of daily active users for that game.

Honour of Kings continues to be a core source of earnings.

But overall costs surged 51 percent.

Tencent's gaming business has historically done well, with the PC games segment being the company's cash cow for a long time.

"We will continue to invest in improving our own products as well as enabling services for our partners", founder and Chief Executive Officer Ma Huateng said in a statement. The combined MAU of Weixin and WeChat amounted to 1.040 billion, up 10.9 percent year-on-year and from 989 million sequentially.

Revenue from PC games was flat compared to previous year, but analysts believe the comparison was tough with the 2017 first quarter, and overall its games business was strong. Gaming revenue was up 26%.


  • '17-year-old' basketball star is actually much older, police say

    '17-year-old' basketball star is actually much older, police say

    However, this isn't the first time we've seen people in their 20s successfully pose as high schoolers to play sports. He was arrested and charged with felony tampering with government documents for filing false enrollment records.
    Microsoft Plans $400 Surfaces to Take on iPad, Chromebooks

    Microsoft Plans $400 Surfaces to Take on iPad, Chromebooks

    Features that can enhance learning experiences could help Microsoft see more Surface tablets being used in classrooms. The report claims that the upcoming devices will have four hours fewer of battery life as compared to current models.
    Everton Announces Departure of Sam Allardyce

    Everton Announces Departure of Sam Allardyce

    Watford "remain furious" that Everton's interest past year unsettled Silva and a poor run of form led to his sacking in January. Everton said in a statement: "We have made the decision, as part of our longer-term plan, we will be appointing a new manager".
  • EU Must Defend Firms against US Iran Sanctions: Macron

    EU Must Defend Firms against US Iran Sanctions: Macron

    In addition, France and the European Union are pressing Washington for exemption from Trump's steel and aluminium tariffs. Total on Wednesday said it might quit a multi-billion-dollar gas project unless it secured a waiver from US sanctions.
    WWE is already giving Ronda Rousey a title shot

    WWE is already giving Ronda Rousey a title shot

    WWE announced Monday at the NBCUniversal Upfront that Rousey will face WWE Raw Women's Champion Nia Jax at the Money In The Bank pay-per-view on June 17th in Chicago.
    Bumrah leads Mumbai to win over Punjab

    Bumrah leads Mumbai to win over Punjab

    But Mumbai turned out to be a slightly different side that day in Indore , and Kings XI have not been the same side ever since. But again, in Bumrah's over, he managed just a single off the second ball. "Bumrah has come a long way in the past two years".
  • Iowa State men's golf makes NCAA Championships

    Iowa State men's golf makes NCAA Championships

    Napier ended the tournament only one stroke behind three players tying for 26th place and within two of claiming a top-20 finish. The top five teams at the end of the tournament advance to the NCAA Championships and Augusta is five shots out of fifth place.
    Kent State graduate's gun-toting photo goes viral

    Kent State graduate's gun-toting photo goes viral

    Those students were killed when guardsmen fired during a mass protest at the school's campus against the USA bombing of Cambodia. Bennett, who was raised by a Republican family in Zanesville, Ohio, knew her photo would provoke backlash.
    First stars formed 250 million years after Big Bang

    First stars formed 250 million years after Big Bang

    Basic elements like oxygen, carbon and nitrogen weren't very common until the first stars had fired up, burnt out and exploded. The distance to the galaxy determined from this observation is consistent with the distance from the oxygen observation.
  • Stan Lee files a $1 billion lawsuit

    Stan Lee files a $1 billion lawsuit

    POW! Entertainment later released a statement to deny all of the accusations, "The allegations are completely without merit". Both films featured cameos from Lee, who has made a habit of popping in Marvel-related movies since 2000's X-Men.
    Kristen Stewart took off his shoes in protest against the dress code

    Kristen Stewart took off his shoes in protest against the dress code

    Stewart was protesting against Cannes Film Festival's infamous and widely criticized heels-only rule for women. People get very upset at you if you, like, don't wear heels or something-whatever.
    Whitney Houston was molested by Dee Dee Warwick, new documentary says

    Whitney Houston was molested by Dee Dee Warwick, new documentary says

    The Guardian has contacted representatives of the Warwick family for comment on the allegations. Get all your Whitney-related questions answered when the film hits theaters July 6.