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Tencent Releases Q1 Earnings Report

Tencent

Tencent Holdings Limited, also known as simply Tencent, is the third largest Internet company in the world, behind Google and Amazon, and according to its Q1 2013 earnings report, it continues to grow. Released earlier today, the report announces a net profit of 4.07 billion RMB ($694.4 million USD), an increase of 17.3% compared with 2012 Q4, and an increase of 37.4% over the same period last year (2012 Q1). Total revenue was 13.6 billion RMB ($2.2 billion USD)—an increase of 11.5% from the previous quarter, and an increase of 40.4% over the same period last year.

Online Games

Additionally, online game revenue increased 19.3% to 7.472 billion RMB ($1.216 billion USD). This is mainly driven by the increase in Chinese market revenue from games such as Cross Fire, DNF (aka Dungeon Fighter Online), and League of Legends (Weibo), which benefitted this quarter from the Chinese New Year holidays, students on winter break, and the contribution of new updates to these games. Independent games operated by Tencent, like X-GAME (御龙在天) and Emperor Legend (轩辕传奇), also significantly increased user numbers and revenue.

Mobile Games

Mobile gaming revenue increased by more than 50% year-on-year growth, benefitting from the growing popularity of smart phones and, “our rich combination of mobile games.” QQ Games, a casual games client offering multi-player online games, reached a peak of 920 million users online at the same time in the first quarter of 2013, an increase of 4.5% compared with the previous quarter, and an increase of 4.5% over the same period last year. [Via Games.QQ]

About Tencent

In addition to League of Legends, DNF, and CrossFire, Tencent also operates and publishes games like Monster Hunter Online, Call of Duty Online, ArcheAge, Blade and Soul, Metro Conflict, Asura, The Magic Sword Online, QQ Fantasy, Xunxian, Assault Fire, along with games like QQ Three Kingdoms, QQ Huaxia, QQ Dancer, QQ Nanaimo, QQ Speed, QQ R2Beat, QQ Tang, QQ PET, and AVA (Alliance of Valiant Arms). Tencent also has a minority stake in Epic Games (best known for Gears of War, Infinity Blade) amounting to $330 million USD, and a $400 million USD investment in Riot Games (best known for League of Legends).

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