Date
23 August 2017
Tencent predicts revenue from mobile games will stay flat in the next two quarters. Photo: Bloomberg
Tencent predicts revenue from mobile games will stay flat in the next two quarters. Photo: Bloomberg

Tencent aims to exploit Weixin potentials beyond gaming

Tencent’s first-half net profit jumped 59 percent to 12.2 billion yuan (US$1.98 billion) from a year earlier, thanks to growing contribution from its popular instant messaging app Weixin (WeChat for the international version).

Social network revenue jumped 47 percent, and much of that can be attributed to the success of mobile phone games integrated with Weixin and its Mobile QQ, another instant messenger provided by the group.

Tencent predicts revenue from mobile games will stay flat in the next two quarters as the firm focuses on upgrading the platform.

“There are now over 300 different mobile games on Weixin’s platform, the quality of which greatly varies, and this doesn’t help in enhancing user experience,” the 21st Century Business Herald quoted a mobile game developer as saying.

The number of monthly active users of Weixin and WeChat soared nearly 57 percent to 438 million from a year ago. The reward is so far limited to gaming-related revenue but monetization prospects look bright as Tencent has already started to channel the huge traffic flow from its instant messaging service to boost businesses of affiliates such as JD.com and China South City Holdings (01668.HK).

Weixin is also likely to play a key role in Tencent’s effort to build its online-to-offline businesses. For example, Weixin can generate income by acting as an online advertising platform to drive customers to numerous brick-and-mortar outlets such as shops and restaurants.

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BT/CG

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