TOKYO, May 18, 2018 /PRNewswire/ – Akita Matsui Trading has commented on the recent performance of Tencent Holdings as the company revealed that its Q1 financials yielded considerable growth on a yearly basis, as almost all business lines contributed to yet another profitable quarter for the Chinese internet giant.
Revenue for the January-March period rose to 73.5 billion yuan ($11.7billion), up 48 percent from Q1 2017. That exceeded the $11.3 billion average estimate of 17 analysts noted Akita Matsui Trading analysts.
The owner of WeChat, the China’s most popular social-networking platform, has reported solid revenue growth in every quarter in the last two years. The impressive performance was due to strength in its core businesses as well as the cloud computing, online entertainment and payments segments.
The company also raised its second quarter revenue forecast to growth of 57 to 63 percent, topping the most optimistic of analyst estimates.
Commenting on the results, Chief Research Analyst at Akita Matsui Trading, Omori Matsuyo said: “Tencent has made some high-profile investments in recent months, which made substantial contributions to it top line growth over the first quarter.”
By noon, Tencent shares were up 5 percent in the benchmark Hang Seng Index, adding $22 billion to the company’s market capitalization. They had increased as much as 10 percent in May, hitting a lifetime closing peak of HK$416 in Hong Kong.
Tencent posted a 61 percent jump in quarterly net profit, which was reported at 23.29 billion yuan ($3.66 billion), beating forecasts of 17.5 billion yuan, though revenues from some product lines grew slower than expected.
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Max Harrington, Head of Corporate Equities at Akita Matsui Trading added: “Fueled by advertising and online games, digital content subscriptions remain a booming business and we don’t see any signs of slow down or deterioration. Even on the domestic front, Tencent has continued to grow massively similar to its rivals, such as Alibaba.”
Tencent’s strong metrics were also led by the company’s forays into multiple markets. The Shenzhen-based firm has been looking for fresh revenues streams such as its newly launched mini games platform. The positive sentiment has continued this year, with Tencent’s stock price surging over 15 percent YTD in 2018.
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SOURCE Akita Matsui Trading
