Tencent’s second-quarter net profit of 3.68 billion yuan Dropped 9%

tencent released today in fiscal 2013 second quarter results. The second quarter, tencent’s revenue of 14.4 billion yuan, up 36.6% from a year earlier. net profit of 3.6804 billion yuan ($595.7 million), from the previous quarter fell by 9.0%, 18.7% higher than the same period last year. Not according to general accounting standards computation, the net profit of 4.152 billion yuan, up 22.6% from a year earlier.

in the second quarter 2013 results summary:

total revenue of 14.3845 billion yuan ($2.3281 billion), up 6.2% over the previous quarter, compared with the same period last year growth of 36.6%.

value-added service income of 10.7521 billion yuan ($1.7402 billion), up 0.8% over the previous quarter, compared with the same period last year growth of 23.4%.

network advertising business income of 1.2973 billion yuan ($210 million), up 52.7% over the previous quarter, compared with the same period last year growth of 47.5%.

e-commerce transactions business income of 2.1994 billion yuan ($356 million), up 15.0% over the previous quarter, and 156.5% more than last year.

gross profit of 7.7942 billion yuan ($1.2615 billion), up 2.6% over the previous quarter, compared with the same period last year growth of 25.4%; Gross margin fell to 54.2% from 56.1% the previous quarter.

operating profit of 4.5651 billion yuan ($738.8 million), from the previous quarter fell by 9.8%, 15.9% higher than the same period last year. Operating margins fell to 31.7% from 37.4% the previous quarter.

the gaap operating profit RMB 5.0505 billion ($817.4 million), a fall of 0.2% from the previous quarter, compared with the same period last year growth of 19.6%; The gaap operating margins fell to 35.1% from 37.4% the previous quarter.

period profit of 3.6843 billion yuan ($596.3 million), from the previous quarter fell by 9.5%, 18.4% higher than the same period last year. The net interest rate fell to 25.6% from 30.1% the previous quarter.

the general profit accounting period 1 RMB 4.1895 billion ($678.1 million), up 2.4% over the previous quarter, compared with the same period last year growth of 22.8%; The gaap net interest rate fell to 29.1% from 30.2% the previous quarter.

the company’s equity holders should be accounted for a profit of 3.6804 billion yuan ($595.7 million), from the previous quarter fell by 9.0%, 18.7% higher than the same period last year.

the gaap rights holders should account for the company profit 1 RMB 4.152 billion ($672 million), up 2.8% over the previous quarter, compared with the same period last year growth of 22.6%.

basic earnings per share were 2.009 yuan, diluted earnings per share were 1.976 yuan.

in the first half of 2013 results summary:

– total income of 27.9321 billion yuan ($4.5207 billion), 38.4% more than last year.

– value-added service income of 21.4182 billion yuan ($3.4665 billion), 25.9% more than last year.

– online advertising business income of 2.1468 billion yuan ($347.5 million), 51.2% more than last year.

– e-commerce transactions business income of 4.1128 billion yuan ($665.6 million), 155.4% more than last year.

– gross profit of 15.388 billion yuan ($2.4905 billion), 27.9% more than last year. Gross margin fell to 55.1% from 59.6% in the first half of last year.

– operating profit of 9.6276 billion yuan ($1.5582 billion), 26.2% more than last year. Operating margins fell to 34.5% from 37.8% in the first half of last year.

– not gaap operating profit RMB 10.1114 billion ($1.6365 billion), 22.0% more than last year; The gaap operating margins fell to 36.2% from 41.1% in the first half of last year.

– term profit of 7.7554 billion yuan ($1.2552 billion), 27.7% more than last year. The net interest rate fell to 27.8% from 30.1% in the first half of last year.

the general profit accounting period 2 RMB 8.2788 billion ($1.3399 billion), 23.2% more than last year. The gaap net interest rate fell to 29.6% from 33.3% in the first half of last year.

– rights holders should account for the company profit of 7.7242 billion yuan ($1.2501 billion), 27.7% more than last year.

– not gaap rights holders should account for the company profit 2 RMB 8.1897 billion ($1.3255 billion), 22.8% more than last year.

– basic earnings per share were 4.213 yuan, diluted earnings per share were 4.141 yuan.

main platform data:

– instant messaging service month active account number up to 818.5 million, from the previous quarter fell by 0.8%, 4.5% higher than the same period last year.

– instant messaging service supreme online account number 173.2 million at the same time, a 0.1% increase over the previous quarter, compared with the same period last year growth of 4.0%.

– “WeChat/WeChat” on the merger of the active account number at 235.8 million, up 21.3% over the previous quarter, compared with the same period last year growth of 176.8%.

– “QQ space” on active account number reached 626.4 million, up 2.5% over the previous quarter, compared with the same period last year growth of 4.8%.

– “QQ game” platform top online account number is 8.4 million, at the same time than the previous quarter fell by 8.7%, compared with the same period last year dropped by 4.5%.

– value-added services paid the registered account number is 98.7 million, from the previous quarter fell by 5.6%, compared with the same period last year dropped by 9.7%.

ma, chairman and CEO of tencent (weibo), said: “benefit from us in the network game and online advertising market leadership, we have made in the second quarter of the steady financial performance, including profit and free cash time than healthy growth. In the mobile world peace on the stage of investment, improving the user activity on the mobile end products, the mobile version of QQ, QQ space mobile version, such as micro letter and WeChat application of smart phone users usage has achieved rapid growth. Recently, we in the QQ mobile version and the first mobile games were released on WeChat users, shows our strength of platform, network community high activity and high levels of the game execution ability. We will continue to invest in a mobile application, in order to strengthen our position in the Chinese market, and through WeChat expand our business in the international market.”

in the second quarter of 2013 financial analysis

value-added service income from the previous quarter growth of 0.8%, to 10.7521 billion yuan, accounting for 74.7% of the total income in the second quarter of 2013. Although influenced by school exam season in China, online game revenue quarter still grew by 1.6% to 7.5945 billion yuan. Such as the increase mainly reflects the “underground city and warrior” and “hero alliance” main game revenue growth in China and from the contributions of the international market. Social networking earnings season than fell 1.1% to 3.1576 billion yuan. That reduce mainly reflects the monthly income of the lower part of our open platform application according to article offset sales growth.

online advertising revenue up 52.7% over the previous quarter, reached 1.2973 billion yuan, accounting for 9.0% of total revenues in the second quarter. The increase is mainly driven by better in the second quarter of seasonal factors, and also reflects the effect of social network advertising and video advertising continues to grow.

e-commerce trading income up 15.0% over the previous quarter, reached 2.1994 billion yuan, accounting for 15.3% of total revenues in the second quarter. The increase is mainly affected by seasonal promotions, geographic expansion and goods category.

in the third quarter of 2013 other major financial information

this quarter stock compensation costs RMB 446.6 million, in the first quarter on the spending of 397.7 million yuan.

capital expenditure of 1.464 billion yuan, this quarter on quarter in the spending of 1.0346 billion yuan.

this quarter the company on the stock exchange to the total price of hk $1.1255 billion to buy 4585700 shares, the previous quarter to hk $508.8 million to buy 508.8 million shares.

on June 30, 2013, the company’s financial resources net of 33.5565 billion yuan, of which the total before the loan of RMB 2.8404 billion and RMB 2.8404 billion, long-term notes payable.

on June 30, 2013, the company’s total issued shares to 1.852 billion shares.

business review and prospects of

the overall financial performance

in the second quarter of 2013, our revenue and earnings compared to solid growth, and continue to invest in the mobile platform, e-commerce and international development of new opportunities. Season our gaap operating profit and net profit than to drop, mainly because in the last quarter from our investment company Mail. Ru, and this quarter is not special dividend income, as well as the WeChat, strengthened in the international market in the second quarter of the promotional activities, and our season than gaap net income than growth mainly because revenue growth.

– value-added services. Our online games business benefit from the main game and the new research in China’s growth, as well as from the contribution of the international market. Our social network income benefit from the article we open platform according to income growth and achieve year-on-year growth.

– online advertising. Our network advertising business income year-on-year growth, mainly by the brand effect of display and display advertising growth. Especially the effect of social network advertising and video advertising in the continuing strong growth in the second quarter.

– e-commerce transactions. In the more competitive market environment, our e-commerce transactions in the second quarter of 2013 continued to expand. Revenue from proprietary trading was significantly increase over the same period last year, volume and income increase in every transaction. Fee income also increased from our trading platform.

Financial the

in June 2013, the standard & poor’s to tencent’s long-term corporate credit rating from “BBB +” to “A -“, prospects for stability, which is its highest rating to non-state-owned enterprises in China. Standard & poor’s also to our preferred unsecured notes issued by “BBB +” rating to “A -“, as well as to the tencent in the greater China region and the paper credit rating from “cnA +” to “cnAA”. Standard & poor’s think rating reflects our ascension with strong growth in business scale, the increasing user base, the type of service is more diverse and more strong competition strength, and strengthens the financial strength of us.

branch and the product the

communication platform

in the second quarter of 2013, due to the rapid development of mobile Internet further, QQ smartphone user base year-on-year growth. In this quarter, QQ on active accounts rose 4.5% to 818.5 million, and its active smartphone month account Year-on-year growth of more than 200% to 477.6 million. In the second quarter of QQ highest year-on-year growth of 4.0% to 173.2 million online account at the same time. Because relative to PC users, mobile phone users having multiple accounts is less, so were measured in account number on QQ active accounts, and the highest at the same time, online account year-on-year growth has slowed.

in the second quarter of 2013, active accounts WeChat and WeChat merger month rose 176.8% to 235.8 million. WeChat because of its innovative features and superior user experience, users continues to grow rapidly, to expand its China a leading position in the smart phone community. We strengthened the WeChat promotion activities in the international market, thus WeChat users to growth accelerated in the season. In August 2013, we launched WeChat and the new version of WeChat, integrated services such as network game, expression and payment, enable us to expand the scope of providing services, and develop new business opportunities.

social networking platform

QQ space users, recorded a steady growth is driven by the increasing number of mobile phone users. Active accounts in the second quarter of 2013, the month rose 4.8% to 626.4 million. Its on smartphone active accounts in the end of the season to 357 million, accounting for 57.0% of the total monthly active accounts. Mobile phone users activity continues to strengthen, mainly reflect smartphone user base to expand and stronger in the field of functions such as photo and video sharing. WeChat friends catching in the smart phone users.

media platform

in the second quarter of 2013, tencent, tencent weibo and tencent video continues to bring new content experience for our users. Because the user’s behavior with the increase of the use of mobile terminals and the online time more diffuse and change, we are to strengthen the media platform of mobile and personal, ongoing content increase at the same time. “Tencent news”, for example, through the user widely used WeChat plug-ins, increasingly popular full-featured smartphone news application, and is compatible with smart phones and the WAP gateway leading market, so as to set up a solid foundation to meet the needs of the intelligent mobile phone users to content.

value-added services

we open platform paying users achieve strong year-on-year growth. Since we launched in June 2011, assigned to the third party developers accumulated income reached 3 billion yuan in less than two years. nullnullnullnullnullnullnullnull