Tencent Profit Up 19%

Tencent Holdings Limited (SEHK 00700), today announced results for the third quarter of 2009 ended September 30, 2009. Total revenues were RMB3,368.9 million (USD493.3 million), an increase of 17.0% over the second quarter of 2009 (“QoQ”) or an increase of 66.4% over the third quarter of 2008 (“YoY”).

Revenue from online gaming business increased 23.2% QoQ to RMB1,528.7 million. The significant growth reflected the positive seasonal impact of the summer school holidays which increased monetization of its major games, Cross Fire, Dungeon and Fighter, QQ Dancer and QQ speed. This was partially offset by the decline in revenues from more mature MMOGs, including QQ Huaxia, QQ Fantasy and QQ SanGuo. Revenues from QQ Game remained flat as it faced cannibalization from other SNS-based casual gaming applications.

Profit for the period was RMB1,433.2million (USD209.9 million), an increase of 19.3% QoQ or an increase of 92.3% YoY. Net margin increased to 42.5% from 41.8% last quarter .

Peak simultaneous online user accounts for IM services recorded 75.5 million, a growth of 23.2% QoQ. Peak simultaneous online user accounts of QQ Game portal (for mini casual games only) was 5.7 million, representing a decrease of 8.1% QoQ