Tencent Sales Jump 61%, Defying Law of Large Numbers
Tencent Holdings is defying the law of large numbers, posting accelerating revenue growth and topping the most optimistic of analyst estimates.
The owner of WeChat, the social network that is nearly ubiquitous in China, reported a 61 percent rise in third-quarter sales. Fueled by advertising and hit game “Honour of Kings,” the growth was the fastest since 2010, when revenue was a mere one-fourteenth of its current level.
By getting WeChat onto almost a billion smartphones in China, Tencent has leveraged the instant message service into an entertainment and gaming platform that is driving advertising sales. Although the Shenzhen-based company remains largely absent overseas, it’s built a 12 percent stake in Snapchat-owner Snap Inc. and is exploring new sources of growth in the cloud, financial services, movies and music.
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