Plans to increase investments in R&D, technical infrastructure, people development and branding
Tencent Holdings, a provider of internet and mobile and telecommunications value added services in China, has reported total revenue of RMB3.69bn for the fourth quarter of the fiscal 2009, an increase of 75.9%, compared to RMB2.1bn for the same period last year.
Gross margin decreased to 69% from 69.6% last quarter. The company posted an operating profit of RMB1.77bn, an increase of 90.5% YoY, while the operating margin decreased to 48.2% from 49.9% last quarter.
For the fourth quarter ended December 31, 2009, the company posted a profit of RMB1.53bn, up 75.0% compared to the same quarter of the previous year. Capital expenditure for the quarter increased to RMB369.2m as compared with RMB269.1m for the previous quarter.
The revenues from IVAS increased by 92.6% to RMB2.84bn, MVAS revenue rose by 37.5% to RMB549.9m and revenues from online advertising increased to RMB279m.
For full year 2009, the company reported total revenue of RMB12.44bn, an increase of 73.9% compared to 2008. Gross profit for the year increased to RMB8.55bn and operating profit increased to RMB6.02bn.
Ma Huateng, chairman and CEO of Tencent, said, We are excited to report that QQ IM’s PCU exceeded 100 million in March 2010, marking a new milestone in the history of China’s Internet market. In order to maintain our position in this dynamic and highly competitive industry, we will continue to increase our investments in research and development, technical infrastructure, people development and branding in the coming years.