Tencent’s total revenues were RMB19,808 million (USD3,220 million) in Q3 2014, an increase of 28% YoY. Profit for the period was RMB5,676 million (USD923 million), an increase of 46% YoY.
Mr. Ma Huateng, Chairman and CEO of Tencent, said,
We achieved another quarter of solid growth in our platforms, revenue and earnings. Our online advertising business expanded particularly swiftly, as we deployed targeted performance-based advertising on Mobile Qzone and Weixin Official Accounts. Given our traffic leadership and logged-in relationship with users, together with the proven scale of performance-based advertising services in China and overseas, we see ample scope for growth in our performance-based advertising business. During the quarter, we also retained our industry leadership in mobile and PC games, increased the market share of our app store YingYongBao significantly, and reinvigorated our subscription products via enhanced mobile privileges. Looking forward, we will deepen our partnerships with vertical leaders and continue to invest in our platforms, products, and people.
Tencent’s revenues from smart phone games integrated with Mobile QQ and Wechat also grew, with an expanded user base and full quarter revenue contribution compared to the same period last year. Social networks revenues increased by 47% to RMB4,723 million, due to increased item sales on mobile platforms and renewed growth of subscription revenues, as Tencent enhanced mobile privileges and mobile user experience for QQ Membership, Super VIP and Qzone subscription service.
In the third quarter of 2014, QQ and Qzone benefited from further growth in mobile user base and enhanced user engagement. For QQ, smart device MAU increased by 36% YoY to 542 million at the end of the quarter.
Mobile QQ experienced enhanced popularity of location-based groups and growth in the user base of Mobile QQ Wallet. New lifestyle services, including shopping, restaurant deals and health monitoring, were integrated with Mobile QQ to deepen its connection with users’ daily lives. For Qzone, smart device MAU increased by 26% YoY to 506 million at the end of the quarter.
Combined MAU of Weixin and WeChat reached 468 million at the end of the third quarter of 2014, representing YoY growth of 39%. Tencent deepened user interaction with the launch of a short video sharing feature (and a contacts app this month), and they improved content discovery through integrated in-application search.
Wechat Payment gained popularity as Tencent focused on enhancing its functionalities. Wechat extended the “shake” function to enhance the real-time engagement of Wechat users with TV programmers, such as the Voice of China 3, via interactive games and social sharing.
Tencent Key platform statistics
- MAU of QQ was 820 million, an increase of 1% YoY
- Smart device MAU of QQ was 542 million, an increase of 36% YoY
- PCU of QQ was 217 million, an increase of 22% YoY.
- Combined MAU of Weixin (Chinese version of Wechat) and WeChat were 468 million, an increase of 39% YoY
- MAU of Qzone was 629 million, an increase of 1% YoY
- Smart device MAU of Qzone was 506 million, an increase of 26% YoY.
- Fee-based VAS registered subscriptions were 89 million, stable YoY.