Tencent is the leading social network and online games firm in China. (Photo : Imaginechina)
Technology firm Tencent Holdings Ltd. has posted a whopping 32-percent rise in its third-quarter net profit, garnering strong revenue growth in mobile games and advertising.
Tencent, currently China's largest online games and social network company, revealed that its net profit rose to 7.45 billion yuan for the past three months ending Sept. 30. In the same period last year, the figure was at 5.66 billion yuan.
The third-quarter revenue also rose by 34 percent to 26.59 billion yuan.
As with the firm's smartphone games revenue, the number reached 5.3 billion yuan, a 60-percent increase year-on-year. Meanwhile, its revenue from advertising nearly doubled from last year's 4.94 billion yuan.
The results have helped ease issues about the fierce smartphone games market competition. The increase in the company's advertising revenue also reassured its investors that mobile ads will become Tencent's future growth engine.
Tencent, through WeChat and QQ, generates revenue by offering games and by placing advertisements.
The two apps are some of the most popular in China. In September, WeChat users increased to 649.5 million from July's 600 million. QQ's active users also rose from 627 million to 639.1 million.
The tech firm has also stepped up its game in the entertainment industry. Over the past year, it has inked various deals with global music companies and Hollywood studios to acquire rights to distribute movies and music.
Though such deals may not directly and immediately boost revenue, the move to get involved in this kind of agreements is expected to entice users to spend more time browsing Tencent platforms.
Analysts added that in the long run, Tencent can gain revenue from these deals through advertising and subscription fees.
