HONG KONG, Aug. 12 /PRNewswire-Asia/ -- Tencent Holdings Limited ("Tencent" or the "Company", SEHK 00700), a leading provider of Internet and mobile & telecommunications value-added services in China, today announced the unaudited consolidated results for the second quarter and the first half year of 2009 ended June 30, 2009.
Highlights for the First Half of 2009:
-- Total revenues were RMB5,382.8 million (USD787.9 million(1)), an
increase of 77.5% over the first half of year ended June 30, 2008
("YoY")
-- Revenues from Internet value-added services ("IVAS") were RMB4,061.0
million (USD594.4 million), an increase of 99.5% YoY
-- Revenues from mobile & telecommunications value-added services
("MVAS") were RMB909.5 million (USD133.1 million), an increase of
45.2% YoY
-- Revenues from online advertising were RMB389.6 million (USD57.0
million), an increase of 6.1% YoY
-- Gross profit was RMB3,662.3 million (USD536.1 million), an increase
of 67.1% YoY
-- Operating profit was RMB2,563.5 million (USD375.2 million), an
increase of 70.6% YoY
-- Net profit for the period was RMB2,255.4 million (USD330.1 million),
an increase of 88.9% YoY
-- Profit attributable to equity holders of the Company for the period
was RMB2,227.9 million (USD326.1 million), an increase of 89.1% YoY
Highlights of the Second Quarter of 2009:
-- Total revenues were RMB2,878.4 million (USD421.3 million), an
increase of 14.9% over the first quarter of 2009 ("QoQ") or an
increase of 79.9% over the second quarter of 2008 ("YoY")
-- Revenues from IVAS were RMB2,156.5 million (USD315.7 million), an
increase of 13.2% QoQ or an increase of 107.9% YoY
-- Revenues from MVAS were RMB470.0 million (USD68.8 million), an
increase of 6.9% QoQ or an increase of 38.9% YoY
-- Revenues from online advertising were RMB243.0 million (USD35.6
million), an increase of 65.8% QoQ or an increase of 9.1% YoY
-- Gross profit was RMB1,943.8 million (USD284.5 million), an increase
of 13.1% QoQ or an increase of 69.5% YoY. Gross margin decreased to
67.5% from 68.6% last quarter
-- Operating profit was RMB1,398.9 million (USD204.8 million), an
increase of 20.1% QoQ or an increase of 82.8% YoY. Operating margin
increased to 48.6% from 46.5% last quarter
-- Profit for the period was RMB1,201.7 million (USD175.9 million), an
increase of 14.1% QoQ or an increase of 84.3% YoY. Net margin
decreased to 41.8% from 42.1% last quarter
-- Profit attributable to equity holders of the Company for the period
was RMB1,192.4 million (USD174.5 million), an increase of 15.2% QoQ
or an increase of 85.2% YoY
-- Key platform statistics:
-- Total registered Instant Messaging ("IM") user accounts increased
to 990.0 million, representing a 5.9% growth QoQ
-- Active IM user accounts increased 9.1% QoQ to 448.0 million
-- Peak simultaneous online user accounts for IM services recorded
61.3 million, a growth of 6.6% QoQ
-- Peak simultaneous online user accounts of QQ Game portal (for mini
casual games only) was 6.2 million, representing a 7.6% growth QoQ
-- IVAS paying subscriptions were 40.0 million, an increase of 8.4%
QoQ
-- MVAS paying subscriptions were 17.2 million, an increase of 2.4%
QoQ
(1) Figures stated in USD are based on USD1 to RMB6.8319
Mr. Ma Huateng, Chairman and CEO of Tencent, said, "For the second quarter of 2009, we delivered solid growth in our operating and financial results as we strengthened our online platforms and increased monetization on our Internet value-added services, especially online games.
For our online advertising business, the industry environment remained challenging although activities picked up modestly this quarter. We believe advertisers are still cautious on ad spend for 2009 until the global economy recovers in a more concrete and sustained manner."
Business Highlights for the Second Quarter of 2009
IVAS revenues increased 13.2% QoQ to RMB2,156.5 million and represented 74.9% of the total revenues in the second quarter of 2009, amid growth in online gaming and community value-added services.
Online gaming revenues increased 17.0% QoQ to RMB1,241.0 million. The growth was driven by the increased monetization of popular games, Dungeon and Fighter and Cross Fire, as well as the organic growth of QQ Game. This was partially offset by the decline in revenues from more mature MMOGs, including QQ Fantasy, QQ SanGuo and QQ Huaxia.
Revenues from our community value-added services increased, driven by the growth in Qzone, QQ Membership and QQ Show. Growth in revenues from Qzone was stimulated by the launch of new applications which enhanced user engagement and activity. Revenues from QQ Membership continued to increase as we enhanced user loyalty and stickiness through the expansion of valued-added functions and cross promotion with our online games and other community services. QQ Show continued to register growth in monthly subscription with the ongoing enhancements in features and user experience.
MVAS revenues increased 6.9% QoQ to RMB470.0 million and represented 16.3% of the total revenues. This was mainly driven by our bundled SMS packages and mobile gaming services. The growth is partly offset by the decline in revenues from our mobile voice value-added services as a result of the dwindling business volume of color ring back tone.
Online advertising revenues increased 65.8% QoQ to RMB243.0 million and represented 8.4% of total revenues. The growth primarily reflected better seasonality in the second quarter. In addition, there was an increase in advertising spending as advertisers resumed their activities upon signing of framework contracts. The first quarter of 2009 was particularly subdued for the online advertising business as advertisers delayed their spending in response to the uncertain economic environment.
Other Key Financial Information for the Second Quarter of 2009
Share-based compensation was RMB53.9 million for the second quarter of 2009 as compared with RMB49.3 million for the previous quarter.
Foreign exchange loss was RMB0.7 million for the second quarter of 2009 as compared with a gain of RMB0.2 million for the previous quarter.
Capital expenditure was RMB191.3 million for the second quarter of 2009 as compared with RMB196.9 million for the previous quarter.
Basic earnings per share for the quarter were RMB0.662, and diluted earnings per share were RMB0.647.
As at the end of June 30, 2009, cash position stood at RMB7,782.9 million. The total number of shares of the Company in issue was 1.804 billion.
Outlook
Looking ahead, the Company expects that the third quarter would present stronger seasonality compared to the second quarter for online games due to summer school holidays, although the increase in monetization of games launched in 2008 would be more difficult as the games mature over time. In order to ensure the quality and depth of content for our upcoming MMOGs, we have decided to postpone the launch of our two in-house developed MMOGs, which were originally scheduled for launch towards the end of 2009, to the first half of 2010. Although our gaming revenue may be affected in the short-term as a result of this decision, we believe it will benefit our gaming business over the longer run.
As advertisers are still cautious and the recent improvements in market sentiment are still fragile, the Company expects the outlook of the online advertising industry to remain challenging in the second half of 2009. The Company will continue to make prudent investments in sales organization, content, technology platform, branding and relationship with advertisers to prepare for an eventual market recovery in the future.
About Tencent
Tencent aims to enrich the interactive online experience of Internet users in China by providing a comprehensive range of Internet and wireless
value-added services. Through its various online platforms, including Instant Messaging QQ, web portal QQ.com, QQ Game portal, multi-media social networking service Qzone and wireless portal, Tencent services the largest online community in China and fulfills the user's needs for communication, information, entertainment and e-Commerce on the Internet.
Tencent has three main streams of revenues: Internet value-added services, mobile and telecommunications value-added services and online advertising.
Shares of Tencent Holdings Limited are traded on the Main Board of the Stock Exchange of Hong Kong Limited, under stock code 00700. The Company became one of the 43 constituents of the Hang Seng Index (HSI) on June 10, 2008. For more information, please visit http://www.tencent.com/ir .
For enquiries, please contact:
Catherine Chan
Tel: +86-755-8601-3388 x88369 or +852-2179-5122
Email: cchan@tencent.com
Jane Yip
Tel: +86-755-8601-3388 x81374 or +852-2179-5122
Email: janeyip@tencent.com
Forward-Looking Statements
This press release contains forward-looking statements relating to the business outlook, forecast business plans and growth strategies of the Company. These forward-looking statements are based on information currently available to the Group and are stated herein on the basis of the outlook at the time of this announcement. They are based on certain expectations, assumptions and premises, some of which are subjective or beyond our control. These
forward-looking statements may prove to be incorrect and may not be realized in future. Underlying the forward-looking statements is a large number of risks and uncertainties. Further information regarding these risks and uncertainties is included in our other public disclosure documents on our corporate website.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
In RMB '000 (unless otherwise stated)
Unaudited Unaudited
2Q2009 1Q2009 2Q2009 2Q2008
Revenues 2,878,423 2,504,365 2,878,423 1,599,778
Internet VAS 2,156,468 1,904,563 2,156,468 1,037,042
Mobile &
Telecom VAS 470,003 439,545 470,003 338,311
Online Advertising 243,044 146,563 243,044 222,790
Others 8,908 13,694 8,908 1,635
Cost of revenues (934,613) (785,914) (934,613) (453,069)
Gross profit 1,943,810 1,718,451 1,943,810 1,146,709
Gross margin 67.5% 68.6% 67.5% 71.7%
Other gains/(losses),
net 25,328 (771) 25,328 25,855
S&M expenses (114,587) (98,105) (114,587) (100,212)
G&A expenses (455,629) (455,018) (455,629) (307,059)
Operating profit 1,398,922 1,164,557 1,398,922 765,293
Operating margin 48.6% 46.5% 48.6% 47.8%
Finance (costs)/income (653) 248 (653) (40,918)
Share of profit of
associates 3,452 5,372 3,452 (1,558)
Profit before
income tax 1,401,721 1,170,177 1,401,721 722,817
Income tax expense (199,973) (116,567) (199,973) (70,618)
Profit /total
comprehensive
income for the
period 1,201,748 1,053,610 1,201,748 652,199
Net margin 41.8% 42.1% 41.8% 40.8%
Attributable to:
Equity holders of
the Company 1,192,410 1,035,440 1,192,410 643,979
Minority interests 9,338 18,170 9,338 8,220
Earnings per share
- basic (RMB) 0.662 0.577 0.662 0.359
- diluted (RMB) 0.647 0.566 0.647 0.349
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
In RMB '000 (unless otherwise stated)
Unaudited
30 June 31 March
2009 2009
ASSETS
Non-current assets
Fixed assets 1,703,614 1,347,998
Construction in progress 554,982 825,702
Investment properties 32,034 32,212
Leasehold land and land use rights 35,671 35,859
Intangible assets 316,682 339,170
Investment in associates 324,429 320,633
Deferred income tax assets 302,599 318,016
Held-to-maturity investments 341,595 --
Available-for-sale financial assets 89,087 87,037
Prepayments, deposits and other
receivables 93,129 124,363
3,793,822 3,430,990
Current assets
Inventories 1,378 2,294
Accounts receivable 1,194,668 1,103,997
Prepayments, deposits and other
receivables 410,800 374,498
Financial assets held for trading -- 329,866
Term deposits with initial term of over
three months 3,380,260 2,464,401
Cash and cash equivalents 4,061,022 3,803,523
9,048,128 8,078,579
Total Assets 12,841,950 11,509,569
EQUITY
Equity attributable to the Company's
equity holders
Share capital 196 195
Share premium 1,163,452 1,106,830
Shares held for share award scheme (46,232) (27,692)
Share-based compensation reserve 485,139 431,006
Other reserves (431,621) (433,038)
Retained earnings 7,610,759 6,974,370
8,781,693 8,051,671
Minority interests in equity 102,894 116,576
Total Equity 8,884,587 8,168,247
LIABILITIES
Non-current liabilities
Deferred income tax liabilities 73,365 73,757
Long-term payables 553,429 566,269
626,794 640,026
Current liabilities
Accounts payable 637,101 438,820
Other payables and accruals 1,115,966 886,882
Current income tax liabilities 148,274 126,902
Other tax liabilities 112,566 132,081
Deferred revenue 1,316,662 1,116,611
3,330,569 2,701,296
Total Liabilities 3,957,363 3,341,322
Total Equity and Liabilities 12,841,950 11,509,569
