Tencent published its Q3 finance report on November 13, by the end of September 30 2013, Tencent’s total revenue in Q3 reached 15.54 billion yuan (USD 2.53 billion), 34.3% more than that of 2012.
Key Financial Statistics:
- Total revenue in Q3 reached 15.54 billion yuan (USD 2.53 billion), with 8% QoQ increase rate and 34.3% YoY increase;
- Value-added service revenue reached 11.64 billion yuan (USD 1.89 billion), with 8.2% QoQ increase and 24.9% YoY increase;
- Online advertising revenue reached 1.39 billion yuan (USD 226.1 million), with 7.2% QoQ increase and 36.9% YoY increase;
- E-Commerce revenue reached 2.36 billion yuan (USD 383.8 million), with 7.3% QoQ increase and 108.1% YoY increase;
- Gross profit reached 8.50 billion yuan (USD 1.38 billion), with 9% QoQ increase and 25.4% YoY increase. And its gross profit rate dropped from 58.6% in Q3 2012 to 54.7% in Q3 2013;
- Net profit in Q3 reached 3.88 billion yuan (USD 630.5 million), with 5.2% QoQ increase and 19.6% YoY increase. And its net profit rate dropped from 28% in Q3 2012 to 25% in Q3 2013.
Value-added service revenue grew by 24.9% quarterly and reached to USD 1.89 billion, occupied 74.9% of total revenue in Q3 2013. Online games reached to 8.42 billion yuan (USD 1.37 billion), with 35.4% YoY increase. The growth of online games was mainly from domestic PC games and international income growth. Revenue from social network grew by 3.7% annually, reaching 3.21 billion yuan (USD 523.7 million). Mobile QQ and Wechat games also contributed to social network and online games income growth.
Online advertising reached to USD 226.1 million with 36.9% annually growth, occupied 8.9% of total revenue in Q3. It was driven by social network advertising and online video advertising. Traditional brands advertising grew a little, too.
E-Commerce revenue in Q3 reached USD 383.8 million, growing 108.1% compared to 2012, occupied 15.2% of total revenue in Q3. It’s mainly because of the transaction growth on websites and increase of platform service fees.
Tencent Main Platforms Data
- IM monthly active accounts reached 815.6 million in Q3, dropped by 0.4% compared to Q2 2013, increased by 4% compared to Q3 2012;
- IM highest online accounts reached 178.2 million in Q3, with 2.9% QoQ increase and 6.5% YoY increase;
- Weixin and Wechat monthly active accounts in total reached 271.9 million, with 15.3% QoQ increase and 124.3% YoY increase;
- Qzone monthly active accounts reached 623.3 million, with 0.5% QoQ drop and 5.1% YoY increase;
- QQ Game platfrom highest online accounts reached 8 million, dropped by 2.4% quarterly, and 12.8% less than that of 2012;
- Value-added service registered users reached 89 million, 9.8% less than Q2 and 17.2% less than that of 2012.
In Q3 2013, the number of QQ users kept growing steadily, monthly active users grew by 4% annually and reached to 815.6 million. Smartphone QQ active users increased by 10.1% quarterly.
Weixin and Wechat monthly active accounts in total increased by 124.3% annually, reaching to 271.9 million. The new services, new functions and improved user experience attracted a large number of users. Besides, Wechat user’s growth was due to the international promotion campaigns.
Qzone monthly active users remained 623.3 million in Q3, almost the same with Q2 2013. But its mobile active users grew by 10.4% quarterly, which showed users gradually accepted mobile Qzone.
Tencent news made a significant growth in mobile-end. Through mobile QQ and Weixin/Wechat plugins, Tencent news expanded its users greatly.
In Q3 2013, Tencent’s value-added service registered users dropped slightly, which reflected paid users were transferring from PC-end to mobile-end. Smartphone payment channels were less than PC-end and feature phone. Right now, Tencent made some adjustment according to smartphone payment , making SVIP(super member qq VIP) the main payment channel for smartphone users.
QQ Game highest online accounts dropped in Q3 2013. The increase of mobile users became a distraction, and the influence of public platforms also affected user activities. Since August 2013, Tencent had launched several mobile QQ and Weixin/Wechat games, some of which ranked top in Apple store and Android stores.
Online advertising kept growing in Q3 2013. In brand display ads, online video advertising was benefited from the growth of ads and advertising price. In effect display ads, social network benefited from the increase of exposure and precised targeting, making customers CPC more competitive. In search ads, it’s expected the integration of Soso and Sogou would be completed by the end of 2013.