Last week Tencent announced (warning: PDF) the unaudited consolidated results for the fourth quarter of 2008 and audited consolidated results for the year ended December 31, 2008.
Highlights of 2008 Full Year
- Total revenues were RMB7,154.5 million (USD1,046.8 million1), an increase of 87.2% over the year ended December 31, 2007 (“YoY”)
- Revenues from Internet value-added services (IVAS) were RMB4,915.0 million (USD719.1 million), an increase of 95.5% YoY
- Revenues from Mobile & telecommunications value-added services (MVAS) were RMB1,399.0 million (USD204.7 million), an increase of 73.2% YoY
- Revenues from Online advertising were RMB826.0 million (USD120.9 million), an increase of 67.5% YoY
- Gross profit was RMB4,984.1 million (USD729.2 million), an increase of 84.4% YoY. Gross margin decreased to 69.7% from 70.8% last year
- Operating profit was RMB3,246.0 million (USD474.9 million), an increase of 98.5% YoY. Operating margin increased to 45.4% from 42.8% last year
- Profit for the year was RMB2,815.7 million (USD412.0 million), an increase of 79.6% YoY. Net margin decreased to 39.4% from 41.0% last year
- Profit attributable to the equity holders of the Company for the year was RMB2,784.6 million (USD407.4 million), an increase of 77.8% YoY
- Basic earnings per share were RMB1.552. Diluted earnings per share were RMB1.514.
- The Board of Directors has recommended a final dividend of HKD0.25 per share for the year ended 31 December 2008 and a special dividend of HKD0.10 per share to celebrate the 10-year anniversary of the Company, subject to the approval of the shareholders at the Annual General Meeting to be held on May 13, 2009. The proposed dividend will be payable on May 27, 2009.
Highlights of the Fourth Quarter of 2008
- Total revenues were RMB2,097.4 million (USD306.9 million), an increase of 3.6% over the third quarter of 2008 (“QoQ”) or an increase of 86.9% over the fourth quarter of 2007 (“YoY”)
- Revenues from IVAS were RMB1,478.6 million (USD216.3 million), an increase of 5.6% QoQ or an increase of 97.7% YoY
- Revenues from MVAS were RMB399.9 million (USD58.5 million), an increase of 7.4% QoQ or an increase of 89.0% YoY
- Revenues from Online advertising were RMB209.6 million (USD30.7 million), a decrease of 15.8% QoQ or an increase of 31.2% YoY
Looking into the first quarter of 2009, the Company expects to see a more favorable seasonality for its IVAS business, especially for online games, as a result of winter break for students and the Chinese New Year holidays. On the other hand, its online advertising business would face severe pressure as more and more advertisers scale down or delay their spending under a worsening economic environment. In addition, the first quarter is generally a seasonally weak quarter as advertising activities slow around Chinese New Year holidays.
Click here for the full press release (PDF).
