WeChat MAU Up by 23% to 938M; QQ, QZone Down Q1 2017

Tencent reported the first quarter total revenues of 49,552 million yuan (USD7,182 million) in 2017, an increase of 55% over Q1 2016. WeChat MAU further grew to 938 million while QQ and Qzone MAU saw a decrease in Q1 2017.

Tencent’s Finance Performance in Q1 2017

Online games revenues grew by 34% YoY to 22,811 million yuan for Q1 2017
Social networks revenues grew by 56% YoY to 12,297 million yuan
Online advertising revenues increased by 47% YoY to 6,888 million yuan
Media advertising revenues (mainly including those generated from Tencent news, video and music properties) increased by 20% YoY to 2,509 million yuan

Tencent’s operating profit was 19,272 million yuan (USD2,793 million) in Q1 2017, an increase of 44% YoY. And, operating margin decreased to 39% from 42% last year.

Its profit for the period was 14,548 million yuan (USD2,109 million), an increase of 57% YoY. Net margin was 29%, the same as Q1 2016. Basic earnings per share were RMB1.540. Diluted earnings per share were 1.522 yuan.

Tencent’s entertainment services benefited from the Chinese New Year holiday, and several of their products achieved notable growth during Q1 2017. These include Tencent’s video platform which featured popular original content, as well as newer products such as the karaoke app WeSing, photo editing app Pitu, and mobile games Honour of Kings.

Tencent’s Business Review in Q1 2017

Monthly active user accounts of QQ was 861 million in Q1 2017, a decrease of 2% YoY
- Smart device MAU of QQ2 was 678 million, the same as last year.
- Peak concurrent user accounts of QQ was 266 million, an increase of 3% YoY.
Combined MAU of Weixin and WeChat were 938 million, an increase of 23% YoY. Weibo MAU grew to 313M in Q1 2017
MAU of Qzone was 632 million, a decrease of 3% YoY
- Smart device MAU of Qzone was 605 million, the same as last year.
- Fee-based VAS registered subscriptions were 119 million, an increase of 10% YoY