Tencent raised 70 percent revenue in second quarter

Tencent Holdings Limited posted profit in the second quarter up 70 percent as more gamers play on smartphones rather than computers. Technology giant headquartered in Shenzhen is raising 200 million users who play games every day. Net income rose to 18.2 billion yuan and 1.94 yuan per share, sales rose 59 percent to 56.6 billion yuan (US$8.45 billion) for the three months ended June 30.

Tinuku Tencent raised 70 percent revenue in second quarter

Tencent's revenue increase confirms the company as the largest social network operator in China to generate dividends from mobile internet from nearly 700 million smartphone users in the country.

Game revenue from smartphones rose 54 percent to 14.8 billion yuan compared to the same quarter last year or exceeded a 29 percent growth in personal computer sales of 13.6 billion yuan. Honor of Kings is very popular and raises more than 200 million users every day.

"Growth in smartphone gaming is driven by products like Honor of Kings, China Contra Return, Dragon Nest Mobile and Legacy TLBB Mobile," Tencent said.

Online advertising grew 55 percent to 10.1 million yuan during the quarter as a result of a breakthrough accumulating revenue potential from nearly 963 million monthly active users on WeChat's social networking platform known as Weixin.

Media ads grew 48 percent to 4.1 million yuan, partly from traffic of Tencent News feed and Tencent Video. WeChat's ads grew 61 percent to 6 million yuan. Tencent offers ad placement features for merchants in the social media.

Tencent shares rose 1.4 percent to HK$323.20 before earnings were released. The stock has gained nearly 71 percent since the start of the year and provided a market capitalization of HK$3.07 trillion (US$392 billion).