The internet and e-commerce giant Tencent Holdings Ltd., China’s largest internet company by market cap, yesterday reported its financial results for the FY2016. Tencent operates the massively popular Tencent QQ and Weixin platforms in China, and took Xianbei, its own stuff marketplace, live in mid-2016. Naspers holds 34 percent of Tencent. 

The company reported a net profit of RMB 41.5 billion ($6 billion U.S.) for FY2016, up 42 percent from FY2015, on revenue of RMB 151.9 billion, which was up 48 percent. The bulk of the revenue was derived from online advertising and value-added services.

Online advertising revenue rose 54 percent year-on-year to RMB 26.9 billion, propelled by growth in advertising from WeChat Moments, Tencent’s popular mobile news app, and WeChat official accounts (businesses, for instance, OLX in some countries in Africa). 

The combined monthly active users of social network Weixin and messenger WeChat rose 28 percent year-on-year to 889 million.

The financial results of Tencent’s classifieds were not reported separately.

The release of the report was followed by an announcement that Tencent led a $350-million U.S. investment in the Instagram-equivalent Kuaishou.

Tencent’s results continue positive trends for China’s tech and e-commerce “big three” –  alongside Alibaba (NYSE: BABA) and Baidu. A recent report by Goldman Sachs prognosed the Chinese e-commerce market will double by 2020, while mobile gaming and advertising revenue continue to rise across the board.  

Ma Huateng, chairman and CEO of Tencent, commented the FY2016 results, as follows: “During 2016 … QQ and Weixin reinforced their positions as ubiquitous platforms for users in China to communicate and socialize, as well as to enjoy content and services efficiently. We launched a number of successful self-developed and licensed games, and solidified our position as the leading game company globally.” 

Tencent’s shares have risen nearly 19 percent in Hong Kong this year, to a record high of $225.2 HKD on Wednesday.

For more, see the original report here

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