Posts Tagged ‘Tencent’

Tencent Announces 2011 Second Quarter and Interim Results

Tencent Holdings Limited (“Tencent” or the “Company”, SEHK 00700), a leading provider of Internet and mobile & telecommunications value-added services in China, today announced the unaudited consolidated results for the second quarter and the first half year of 2011 ended June 30, 2011.

Highlights of the First Half of 2011:

Total revenues were RMB13,077.5 million (USD2,020.7 million(1)), an increase of 47.0% over the first half of year endedJune 30, 2010 (“YoY”).
Revenues from Internet value-added services (“IVAS”) were RMB10,637.9 million (USD1,643.8 million), an increase of 52.6% YoY.
Revenues from mobile & telecommunications value-added services (“MVAS”) were RMB1,571.6 million (USD242.9 million), an increase of 21.6% YoY.
Revenues from online advertising were RMB793.2 million (USD122.6 million), an increase of 31.8% YoY.
Gross profit was RMB8,552.1 million (USD1,321,5 million), an increase of 40.6% YoY. Gross margin decreased to 65.4% from 68.4% for the first half of 2010.
Operating profit was RMB6,170.4 million (USD953.5 million), an increase of 36.5% YoY. Operating margin decreased to 47.2% from 50.8% for the first half of 2010.
Non-GAAP operating profit(2) was RMB6,317.8 million (USD976.2 million), an increase of 32.7% YoY. Non-GAAP operating margin decreased to 48.3% from 53.5% for the first half of 2010.
Profit for the period was RMB5,227.5 million (USD807.8 million), an increase of 40.0% YoY. Net margin decreased to 40.0% from 42.0% for the first half of 2010.
Non-GAAP profit for the period(2) was RMB5,296.1 million (USD818.4 million), an increase of 33.4% YoY. Non-GAAP net margin decreased to 40.5% from 44.6% for the first half of 2010.
Profit attributable to equity holders of the Company was RMB5,219.6 million (USD806.5 million), an increase of 41.1% YoY.
Non-GAAP profit attributable to equity holders of the Company(2) was RMB5,271.5 million (USD814.6 million), an increase of 34.0% YoY.
Basic earnings per share were RMB2.863. Diluted earnings per share were RMB2.800.

GameLook China Social Games Monthly Report [July 2011]

Tencent Pengyou.com’s popular games this month

According to statistics from Tencent Pengyou.com, Zynga’s CityVille has performed well since it launched on July 26 and it now ranks 6. GameLook believes Tencent will do everything to make CityVille a big success to attract more foreign games giants.

Kunlun has three TOP10 games on Pengyou last month. Hoolai’s Hoolai Three Kingdoms ranks the third. ismole’s Ninja Village ranks the forth and it will enter QZone soon. KingNet has two TOP10 games and Shenma Three Kingdoms is a new game. Fanhou’s HomeWorld ranks the first.

Renren’s popular games this month

Renren’s game user counting system is special in that it is based on most active users. Fanhou’s puzzle game Fairy Tale City ranks the first, which is very impressive considering its HomeWorld on Pengyou. 5minutes’ Little Anchor ranks the tenth and Kingnet’s Pirates King Hook Ups ranks the eighth. The recent popular fishing game Fishing Tatsujin ranks the second. Fishing games are much diversified and many developers have made similar games.

Social Network

Tencent

Tencent’s biggest movement this month was the launching of open mobile flash gaming platform.Tencent’s VP announced that their open platform had nearly 80,000 registered developers since it launched a month ago. Currently 40,000 applications are entering the platform and 3 game applications have 10 million users respectively. Tencent’s social platform has 100 million active users and some games have already got revenue of 10 million Yuan.

Tencent Launched Mobile Flash Gaming Platform

Tencent Pengyou.com change its Chinese name to “PengYou”

[IMPORTANT NOTE]: The preparations for app access to Qzone

Tencent Suffers a Net Loss of RMB 10+ Million after Acquiring Comsenz

Sina

Sina is quickening its pace in opening its gaming platform. The micro gaming platform will be opened in August and it will be free for all developers in the first year.
Sina Weibo launched micro gaming platform

Sina to Issue Virtual Currency in the Third Quarter [...]

Tencent acquires Blade and Sword OL 2 from Pixel Soft, to be tested in August

News from China Joy shows Tencent has acquired Pixel Soft’s 3D Fighting Game Blade and Sword OL 2. The game’s 1st closed beta goes in the end of August. Tencent’s vice president Xiaotie Ma plans to bring Blade and Sword OL 2 to the TGA and relevant competitions are being prepared.

Blade & Sword 2 was developed under 3D engine, and is a MMOARPG which reserves the unique feature of the series of Blade & Sword, so the game focuses more on the action part in battles. The Blade and Sword series is always paid attention by players, especially its fluent and invigoration battle system.

Tencent then exclusively sets a demo experience zone in its booth for the game. This is the 2nd co-operation for Tencent and Pixel Soft, their 1st co-operation has made the Journey to Fairyland’s success in China market, 2005.

ChinaJoy2011: Viewpoints of First Day Summit Forum

Lei Ding (William Ding), CEO of NetEase

The main reason for China’s original games’ success over the past decade: Chinese traditional culture and other local elements have made the games very popular and could compete with foreign games.

Qunzhao Tan, CEO of Shanda Games

Two major trends of the game industry: web games and online social games will continue their popularity; smart phone games will become very popular. Web platform and mobile platform will attract more game players, which is very important for all game companies. The transformation of platforms is unstoppable and platforms will coexist with each other and be more prosperous.

Yufeng Chi, CEO of Perfect World

Chi has shown his concerns about the crisis of copyright among Chinese online games. He said that Saint Seiya 2 had already gone online before their Saint Seiya Online, which is obviously a violation of copyright. He also said that foreign companies felt confused when they were about to operate Dragon Buster in overseas market because there were so many different versions. Chi has called for everyone’s duty of protecting Chinese games’ global reputation.

Yuxin Ren, CEO of Tencent Games.

Ren said there were 3 typical ways of operation in China: the first one is to acquire titles from others; the second is co-operative operation and the last is platform-operation, which is also called a flexible option of online game operation. Ren pointed out that Tencent is working on a platform by combing all its relevant games and softwares, including its chat tool, SNS community. In the sum up, Ren said the future of online games will be more open, and Tencent’s open policy would not be restricted to PC platform.

Wei Liu, CEO of Giant

Online game market experienced an annual growth rate of 70% from 2006 to 2008; while in the past two years, it was 30%. Slowing down is a good thing in the long run, he said. High growing speed will result in more poor quality games, which is not good for players and the game industry.

Dewen Chen, CEO of Changyou

Three viewpoints for the future of online game industry:

1. Cloud computing technology will be very important. As long as you have a cloud-supported browser, you can play games as you like.

2. The mainly challenge for China game industry in the future is marketing. It is becoming very difficult to promote games and the key is to produce comprehensive and diversified games.

3. China will become the largest online game market. China’s game companies’ mergers and acquisitions of foreign game companies are more likely to happen.

GameLook Today:More overseas social game companies will enter Tencent’s platform

Today’s most important news is Zynga’s cooperation with Tencent. We noticed that Tencent had said Zynga was the first foreign game company entering Tencent’s platform; Zynga would not be the only foreign game company but it would always be the most important one. We can see that in the future more overseas social game companies will enter Tencent’s platform.

Tencent’s VP announced today that their open platform had nearly 80,000 registered developers since it launched a month ago. Currently 40,000 applications are entering the platform and 3 game applications have 10 million users respectively. Tencent’s social platform has 100 million active users and some games have already got revenue of 10 million Yuan.

Though the user base is quite large now, GameLook believes the income is far from reaching the peak. DeNA’s social games had revenue of just $5.6 million 2009Q3, while in 2011Q1 it was $393 million (as shown below). Thus Tencent’s platform will also enjoy a rapid growth stage. Who will be the winner depends on the game’s time of launching and the developer’s relationship with Tencent.

Zynga Launches CityVille in China with Tencent

Tencent is partnering with Zynga, the largest developer of games on Facebook Inc.’s site, and launching a Chinese version of CityVille. The game will first launch in beta on Tencent’s Pengyou platform, and will later launch on its main QZone platform. It will be developed by Zynga’s Beijing-based Zynga China studio, featuring elements inspired by China’s pop and traditional culture. The new game is part of Zynga’s strategy to build a “truly localized offering,” the company said in a statement.

As mobile platform has become very important in global game industry now, GameLook has asked Tencent and Zynga whether they have any specific cooperation plan on mobile scoial games. The two companies did not answer it directly but we believe they do. The biggest question is what the share proportion of game income might be. GameLook makes a guess at fifty fifty, as most Chinese social game companies get less than 50% while Tencent has a larger appetite.

This is the first time for Tencent to bring foreign social game companies to its social network, indicating Tencent’s opening up to the world. GameLook has heard many foreign game companies are negotiating with Tencent and Zynga is the most prominent and important one. Many of them are seeking overseas agency for their games, which come from Facebook, South Korea, Japan and etc. Now the situation for Chinese social game companies is becoming very complicated for they are competing directly with foreign game giants.

Tencent Web Game Qi-Xiong Hegemony has closed beta test, to be released on Discuz

Tencent’s web game Qi-Xiong Hegemony (七雄争霸) started beta test on July 19. Now the game has closed beta test and will be officially released on Discuz platform, which has been acquired by Tencent and will take 50% of the game revenue.

The current Baidu search volume of the game has not changed very much, which is probably for increasing game income. Tencent is hoping Discuz could enlarge its income ASAP and make the best use of its “Long Tail Advantage”. Web games are the best choice for Discuz’s commercialization and Tencent’s entering into BBS and community websites in China.

Tencent’s League of Legends Enters Open Beta Today

Finally, we’ve got our chances of free-gank in Tencent’s League of Legends today, which is announced to open beta today with on activated code, no limitations at all. Official additionally offers two more new servers for the open beta to absorb more dota lovers in China who “hate” to obtain any code-only mmos previously.

During the last closed beta, which used to be issued in May, 25th, there were some unstable conditions of servers but dealt with official quickly and nicely, as a result. It seems that Tencent has collected enough confidences for opening arms to welcome more fans “physically” (for hardware capacities)and “mentally”(for idea of operations). The two-month closed beta has told us there have always been tanks, healers and most imortantly, the team spirit even in a dota-like e-sport game, ont only in mmos

Tencent Confirms Blade & Soul’s Attendence at ChinaJoy 2011 Today

There are thousands reasons for Tencent to bring Blade & Soul, a highly expected action title, to the China Joy 2011. So today’s news has undoubtedly announced Tencent decides to bring the big authorized title to China Joy, and to give fans some trophies with autographs of Blade & Soul’s creator Kim Hyung-Tae, who has made big efforts for B&S’s China launch.

The game, according to recent reports, has been become the top 1 in the Korean market just after launched. Since its screenshots, manuscripts and trailers unveiled previously, most of Chinese fans have been attracted by the elaborate graphics and fluent action moves. While, since Tencent has acquired the game, all the insiders from this industry are focusing on its efforts and all the fans are updating their computer configurations to wait the big title launch

Investing war of Alibaba, Tencent and Baidu

Though 2011 is not a good year for Chinese concept stock, the Internet giants like Alibaba, Tencent and Baidu are still willing to enlarge their investment plan.
In addition to entering the e-commerce business, Tencent has implemented a strategic investment (445m RMB) in the well-known film and entertainment group Huayi Brothers Media. In June, Baidu invested 306m RMB in Qunaer.com and entered the online tourism. And then, meituan.com has just completed its series B financing round of US$50M, and Alibaba Group invested in this round.

Looking into the future

The three Internet giants’ large investment has shocked many people. For people outside the industry, it seems like a competition. While for people inside, it is just their strategic investment for this year and further movements are coming soon.

Internet community

The three companies have not commented on the discussion. Alibaba’s chief public relation officer, Ran Tao, said the company’s investment has close connection with their main business.

Analysts believe that the three giants are trying to create a platform large enough for more users. Their main investing idea is similar: the more the users, the more the revenue.

Tencent: TGA e-Sports League to become internationalized

July 18, 2011 On July 16’s TGA (Tencent Game Arena), Tencent’s game marketing director/ TGA project manager Miao Hou and Tencent’s vice president of games Wu Cheng talked about TGA e-Sports League’s plan of internationalization, including team-management, contest between domestic and foreign players, cooperation with Internet cafes, etc. While asked whether all the games of [...]

Tencent Launched Mobile Flash Gaming Platform

Tencent launched its QQ mobile flash gaming platform yesterday, allowing developers to submit their flash games. Tencent has also offered advertising API and paying API to developers, the commission proportion is unknown.The platform has been released on Android, S60 and V5. A total number of 21 flash games went on-line, including Golden Miner, QQ Farmville and Street-Ball.UC mobile web browser represents 51.41% of all mobile web browsers; Tencent mobile web browser makes the second with a share of 18.41%.

Riot Games, Tencent’s Subsidiary, Announces to Enter Korea

Riot Games, the developer of League of Legends, has recently announced that League of Legends is about to enter Korean Market. In the statement, Riot Games also reveals a former executive of SK Telecom and Blizzard Korea will be appointed as the head of this new Korean branch.
Riot Games was established in 2006, but acquired by Tencent, a China-based company later. Its first work, League of Legends has achieved great success in US and European market. Some western media once even compared it with World of Warcraft, saying League of Legends was steadily increasing registered players while World of Warcraft was losing them. The same situation happened in Mainland China too. According to news posted yesterday, the number of peak concurrent users in League of Legends’ Mainland China servers had reached 700 thousand.

GameLook Today:Tencent realized the Grand Slam of plagiarize

Tencent’s LOL touched 700K PCU after open beta on 25 May. This proved that LOL is a successful game. Today, Tencent starts the open beta test of NBA 2K online .The incredible popularity of basketball in Asia combined with the love of online games in that region makes this a very exciting project for 2K.

You always can see some similar gameplay between Tencent and other companies. MengSanGuo is similar to Dota and it ranks 9 in netbar’s Top20 popular online games .LOL placed 13 in netbar’s Top 20 list and we believed it will surpass MengSanGuo in a short time. Freestyle is a basketball games and rank 14 in netbar’s Top 20 list. The Tencent’s NBA 2K Online is also a basketball games .The happy time of Freestyle will not be too long.

Through these years of hard work, Tencent has copied all popular games in the ranklist and this is a bad news to other companies.

Shanda 2011 Allstar game will release nine new games and the official website of 2011 Allstar was launched in yesterday.Tera 、Dota2、RIFT was been putting into list for the players to guess.

Japan’s SRPG Web game Metal SAGA was been released on Renren .In past years, SEGA and Square Enix suffer a crushing defeat in Chinese game market .The Japanese game companies are changing itself positively in order to fit Chinese game market. As far as i know, a lot of Japanese game is web game and web game is suitable to Chinese market now.

Tencent Accquires NBA2K OL, 1st Closed Beta is About to Begin

Tencent announced it had acquired Take-Two Interactive’s NBA2K Online yesterday, the 1st closed beta was about to begin as well. The game’s official reveals 8 features: a magnificent online game inherited from its PC version, a strong visual effect to embody players and matches, supports multiplayer, basketball player’s free customization and cultivation, flexible team management, introduces Asia styled features to the game, multi-game modes, and the slogan “review the classical and create new miracles”.