Source: Company reports

4Q15 RESULTS

Tencent reported 4Q15 total revenues of ¥30.4 billion (US$4.7 billion), up 45.1% year over year. Revenues were ¥23.1 billion in the VAS segment, up 34.6% year over year, owing to improved digital content subscription services, QQ membership subscription services and virtual item sales. In the Online Advertising segment, revenues were ¥5.7 billion, up 118.2% year over year, reflecting a larger advertiser base and more traffic on the company’s platforms. Revenues were ¥1.6 billion in the Other segment, up 35.1% year over year. During the quarter:

• QQ had 853 million monthly active user (MAU) accounts, up 5%.
• QQ’s smart device MAU count numbered 642 million, up 11%.
• The combined MAU accounts of Weixin and WeChat numbered 697 million, up 39%.
• Fee-based VAS registered subscriptions numbered 95 million, up 13%.

Non-GAAP EPS was ¥0.95, beating the consensus estimate of ¥0.89. GAAP EPS was ¥0.76, compared to ¥0.63 in the year-ago quarter.

2015 RESULTS

Revenues in 2015 were ¥102.9 billion, up 30.3% from the prior year. Revenues in the VAS segment were ¥80.7 billion, up 27.4%. The Online Advertising segment reported revenues of ¥17.5 billion, up 110.3%. Over 65% of the company’s total advertising revenues were generated on mobile platforms during the year. Revenues in the Other segment were ¥4.7 billion, down 35.4% from the prior year. Non-GAAP EPS for the year was ¥3.44, compared to ¥2.59 in the prior year. GAAP EPS was ¥3.06, compared to ¥2.55 in the prior year.

OUTLOOK

In 2016, the company plans to:

• Invest in and develop its core communications and social platforms, particularly in group messaging and video.
• Develop new and emerging smartphone game genres and relationships with leading game developers.
• Expand its advertising business by enhancing its technologies (such as data mining and look-alike user targeting), expanding its advertiser base and adding mobile advertising inventory.
• Grow its digital content businesses, including online video, music and literature.
• Expand its payment services and financial products platform.

Consensus estimates for 2016 are for revenues of ¥129.0 billion, up 25.4%, and non-GAAP EPS of ¥4.30, up 25.0%.