Tencent has reported total revenue reached 89 billion yuan ($25 billion) for the second quarter, after increasing 21% year on year. The Chinese technology giant’s operating profit for the same period came in at 27.5 billion yuan, an increase of 26% from the same period last year. “During the second quarter, we sustained solid user, revenue, and profit growth, and executed on key initiatives amid the challenging business environment,” Tencent CEO and chairman Ma Huateng said. Revenues from the company’s FinTech and Business Services increased by 37% to 23 billion yuan for the second quarter, which the company added was mainly driven by revenue growth from commercial payment and cloud services. During the period, the company’s wealth management platform LiCaiTong grew its aggregated customer assets to over 800 billion yuan as of the end of the second quarter. “[This] indicates trend that our users are increasingly keeping their money within our payment system. This trend brings down the frictional costs for users to use Weixin Pay, reducing our withdrawal fee revenue and bank charge expenses,” the company said. “We believe the overall impact will contribute to the vitality of our FinTech business in the long run. We remain focused on risk management of our FinTech businesses to sustain our long-term platform growth.” Of its total revenue during the quarter ending 30 June 2019, the company said its value-added services (VAS) revenues increased by 14% on a year-on-year basis to 48 billion yuan. Online games revenues grew by 8% to 27… [Read full story]
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