Tencent's Q3 profit jumps 69%, revenues climb 61%

This image is for use with this specific article only** China's answer to Facebook could soon be worth more than the real thing

Chinese internet giant Tencent Holdings Ltd. said third-quarter net profit rose almost 70% from a year earlier, driven by advertising revenue gains and strong growth at its mobile-gaming and digital-content divisions.

Tencent announced another impressive quarter of financials yesterday, but the Chinese internet giant - which is creeping towards a $500 billion market cap - made other financial moves this week.

Maoyan, which says it controls 65 percent of China's online movie ticket market, is also considering an IPO, its spokesman said, though he declined to give a timeline or the planned venue for listing.

Last Thursday, Tencent flagged video games and ad sales as areas where it thinks it could help Snapchat owner Snap Inc after acquiring a 12 percent stake in the United States firm.

EBITDA amounted to CNY 24 billion, up from CNY 15.8 billion in the third quarter of 2016, while capex amounted to CNY 3.4 billion, down from CNY 3.6 billion in the third quarter of 2016.

The bulk of Tencent's revenue comes from online gaming.

It posted a loss of 6.11 billion yuan (699.25 million pounds) in the first half of 2017, compared to a loss of 647,000 yuan a year earlier.

Last week, Tencent's online publishing unit, China Literature Ltd., surged 86% in its Hong Kong trading debut after raising about $1.1 billion in an initial public offering.

Founded in 1998, Tencent is one of three major internet firms in China, along with e-commerce titan Alibaba Group Holding Ltd. and search company Baidu Inc.

Top products include WeChat, a messaging app with 980M monthly active users and 38B daily messages in the quarter, and the streaming service Tencent Video, which had 43M subscriptions. Basic earnings per share were CNY 1.912, while diluted earnings per share stood at CNY 1.888.

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