Tencent's 2017 Third Quarter Results Showed Strong Business and Revenue Growth of Tencent Video

BEIJING, Nov. 20, 2017 /PRNewswire/ -- On November 15, Tencent announced the results for the third quarter of 2017. The total revenues were RMB65,210 million (USD9,825million), with a year-on-year increase of 61%. Tencent Video achieved strong business and revenue growth, which becomes China's top online video platform in terms of mobile daily active users and paid subscriptions, not only achieved rapid and sustainable revenue growth of digital content supported by paid video subscription service, but also realized a big increase in video advertising revenue benefited from high-quality self-commissioned programs and licensed video contents.

During the third quarter of 2017, Tencent recorded strong business and revenue growth across multiple business lines including games, digital content, online advertising and payment related services. "In particular, our video platform gained audience and revenue market share, we believe it has become China's top online video platform in terms of mobile daily active users and paid subscriptions. We believe this success reflects our increasing investment in self-commissioned video content, our improved selection of licensed video content, and our scheduling and audience management initiatives." said Mr. Ma Huateng, Chairman and CEO of Tencent.

Tencent Video has dazzling results on core metrics that define the comprehensive strength of a video platform. According to the mUserTracker from iResearch, a leading third-party research agency in China, in October of 2017, Tencent Video's Daily Unique Mobile Device ranked No.1 with a total number of 140 million, 1.12 million ahead of the second player.

Mobile business growth of Tencent Video was also reflected in the revenue generated by its mobile app. According to StoreIntelligence from SensorTower store intelligence platform, Tencent Video was among the 30 mobile apps with the largest combined global revenue of App Store and Google Play Store in September, together with other 7 apps from China while it was the only one from non-game area. In the updated ranking list of October, with its iOS revenue alone from China, Tencent Video became one of the top 15 global apps by consolidated monthly income. According to the data from App Annie, in October, Tencent Video ranked first by monthly active users among all iOS entertainment apps in China, whilst the first place in revenue of iOS entertainment apps in China.

Thanks to robust revenue growth from digital content and advertisement, Tencent Video built momentum in this quarter. Now Tencent Video has exceeded 43 million fee-based subscriptions, which is believed to be the largest video streaming services subscriber base in China. Tencent's social networks revenues increased by 56% to RMB15,280 million. The increase was primarily driven by revenue growth from digital content services such as live broadcast and video subscription, as well as from virtual item sales.

Quality original programs and licensed video contents have brought about a big increase in video advertising revenue. In the third quarter, Tencent's media advertising revenues increased by 29% to RMB4,122 million, primarily due to growth in revenues from mobile media platforms such as Tencent Video, which benefited from popular drama series such as "Nothing Gold Can Stay" and self-commissioned variety shows such as "The Temptation of Dinner (Season 2)".

These two programs, which were specially remarked by the results report, have brisk performance in Tencent Video. The well-made Nothing Gold Can Stay, with the original broadcasting schedule for paying subscribers, has had more than 12.7 billion views and became the "drama king" of the third quarter. The Temptation of Dinner, as a blend of social elements such as chatting, dining and playing, blazed a trail for new talk show with more than one billion views in total for two seasons, setting a new record for the similar shows in both views and participation in the same period.

More great programs are expected to Tencent Video, such as Ruyi's Royal Love in the Palace, the series of the year starring Zhou Xun and Huo Jianhua, Legend of Fuyao , a female self-help story starring Yang Mi and Ethan Ruan, The Story Of Ming Lan , an ancient costume drama starring Zhao Liying and Feng Shaofeng, Sand , a super online drama starring Wu Lei with Xu Lei as Executive Producer, and The King's Avatar, starring Yang Yang and Song Zuer. Besides, the Super Variety Matrix represented by The Coming One, Roast and Rock & Roast will summon up energy continuously.

Besides increasing investment in video contents, Tencent Video will continue to focus on users and strengthen contents, marketing and products, as well as resource investment to consolidate its leading position in the market.

SOURCE Tencent