The total number of monthly active users on WeChat reached 963 million, an increase of 19.5% YoY according to Tencent’s latest financial results. QQ MAUs dropped 3.9% to 662 million.
Tencent achieved 59% YoY revenue growth in Q2 2017 to RMB 56,606 million (USD8,356 million), driven primarily by smart phone games and PC games, payment related services, online advertising, and digital content subscriptions and sales.
- Value Added Services Revenues increased by 43% to RMB36,804 million for 2Q2017 on a YoY basis.
- Online games revenues increased by 39% to RMB23,861 million, primarily driven by revenue growth from Tencent’s smartphone games, including existing titles such as Honour of Kings, and new titles such as the China version of Contra Return, Dragon Nest Mobile and Legacy TLBB Mobile, and from our key PC titles such as LoL and DnF.
- Social networks revenues increased by 51% to RMB 12,943 million, mainly reflecting growth in revenues from digital content services such as live broadcast, video and music, as well as from item sales in smart phone games.
- Online advertising revenues increased by 55% to RMB10,148 million for 2Q2017 on a YoY basis.
- Media advertising revenues grew by 48% to RMB4,077 million. The increase mainly reflected higher traffic for Tencent Video services and news feed advertisements for our Tencent News products.
- Social and others advertising revenues grew by 61% to RMB6,071 million. The increase primarily reflected growth in advertising revenues derived from WeChat and other mobile apps.
Its operating profit grew by 57% YoY to RMB 22,560 million (USD3,330 million). Profit attributable to equity holders of the Company increased by 70% YoY to RMB 18,231 million (USD2,691 million). Non-GAAP profit attributable to equity holders of the Company increased by 45% YoY. Free cash flow grew by 80% YoY.
Tencent’s Digital Property Update for Q2 2017
Monthly active user accounts (“MAU”) of QQ was 850 million, a decrease of 5.4% YoY. Smart device MAU of QQ was 662 million, a decrease of 3.9% YoY. Peak concurrent user accounts (“PCU”) of QQ (for the quarter) was 268 million, an increase of 8.4% YoY.
Smart device MAU for users aged 21 years or below was up YoY, demonstrating QQ’s increased popularity among younger users. Popular features within Mobile QQ, such as Kandian news feeds, increased average user time spent within Mobile QQ.
Combined MAU of Weixin and WeChat were 963 million, an increase of 19.5% YoY.
MAU of Qzone was 606 million, a decrease of 7.0% YoY. Smart device MAU of Qzone was 586 million, a decrease of 3.5% YoY. Tencent introduced campus page to increase engagement among users in high schools and colleges.
Fee-based VAS registered subscriptions were 118 million, an increase of 12.4% YoY.