Tencent Holdings, a provider of Internet and mobile and telecommunications value added services in China, has reported total revenue of RMB4.67bn (approximately $687.6m) for the second quarter of the fiscal 2010, an increase of 62.2%, compared to RMB2.88bn (approximately $424.3m) for the same period last year.
Gross margin increased to 68.2% from 67.5% for the same period last year. The company posted an operating profit of RMB2.4bn (approximately $349.2m), an increase of 69.5% YoY, while the operating margin increased to 50.8% from 48.6% for the same period previous year.
For the second quarter ended June 30, 2010, the company posted a profit of RMB1.93bn (approximately $284.4m), up 60.7% compared to RMB1.20bn (approximately $177.2m) for the same quarter of the previous year. Earnings per diluted share increased to RMB1.03 from RMB0.65 (approximately $0.15 and $0.09, respectively) for the same period previous year.
Tencent chairman and CEO Ma Huateng said that they had achieved solid operating and financial results in the second quarter. In particular, advertising business achieved significant growth, leveraging on their sponsorship of World Expo and extensive coverage of the World Cup.
"This demonstrated that our QQ.com portal has been gaining higher brand awareness and recognition among advertisers," Huateng said.
"On the other hand, though we managed to achieve growth for our online gaming business, we expect lower year-on-year growth rate in this business going forward due to our already large revenue base, slower overall industry growth and more competition."
