Tencent Holding (TCEHY - Free Report) reported fourth-quarter 2018 adjusted earnings of 30 cents per share that beat the Zacks Consensus Estimate by 2 cents. The figure also increased 13% year over year.
Revenues of $12.37 billion increased 27.9% from the year-ago quarter. The Zacks Consensus Estimate was pegged at $12.33 billion.
In local currency, adjusted earnings were RMB2.07 and revenues were RMB84.89 billion.
Notably, its shares lost 3.5% to close at $45.26 on Mar 22, following the release of the latest earnings. The decline was likely due to lower fourth-quarter 2018 margins as a result of increased spending.
Moreover, shares of Tencent have lost 18.1% over the past year compared with the industry's decline of 8.6% in the same period.
Value Added Services (VAS) revenues (51.4% of total revenues) increased 9.3% year over year to RMB43.65 billion.
Social networks revenues increased 25% year over year to RMB19.5 billion owing to revenue growth from video streaming subscriptions and live broadcast services. However, online games revenues declined 1% year over year to RMB24.2 billion.
Online advertising revenues (20.1% of total revenues) increased 37.8% year over year to RMB17 billion.
Social and other advertising revenues increased 44% year over year to RMB11.8 billion due to ad revenue growth from QQ KanDian, Weixin Moments and Mini Programs.
Mini Programs’ daily visits per user increased 54% year over year and total active users surged more than more than 250% year over year. Additionally, the number of Weixin Pay transactions increased 80% year over year in the reported quarter due to easily deployable QR code solutions.
Additionally, media ad revenues increased 26% year over year to RMB5.2 billion owing to growth from Tencent video and Tencent news.
Tencent Holding Ltd. Price, Consensus and EPS Surprise