Tencent net profit rose 17% from a year ago to 27.2 billion yuan in the first quarter, according to an earnings statement to the Hong Kong stock exchange. Revenue for the quarter climbed 16% year on year to 85.4 billion yuan.
The Chinese technology giant’s revenue from value added services increased slightly by 4% year on year to 48.9 billion yuan, while smartphone game revenue declined 2% to 21.2 billion yuan due to fewer new games launched.
Advertising revenue for the period rose 25% year on year to 13.3 billion yuan.
For the first time, Tencent disclosed the revenue for fintech and its enterprise services business as a single unit. Its 1Q revenue was up 44% to 21.7 billion yuan, attributing it to an increase in business payments, other fintech services including micro loans and its cloud business.
Tencent expects increasing demand for digital payment solutions and financial services will create synergy with its existing consumer service businesses, it said in the statement.
In addition, the active users of WeChat, domestically and globally, reached 1.1 billion, up 6.9% year on year and 1.3% quarter on quarter.