Tencent last year net profit rose 43% basic character expected
China NetScience - Tencent Holdings (0700.HK) last year net profit rose 43% year on year, basically in line with market expectations. The company said it is investing in the development of artificial intelligence (AI) and machine learning and other cutting-edge technology to lay out the future "connection" strategy.
Tencent said that last year's revenue to achieve 48% year on year growth, reaching 15.19 billion yuan, mainly by smart phone games, social and effect advertising, digital content sales and emerging business (such as payment-related services) to promote.
However, due to changes in income structure, operating margin fell by 2 points to 37%, operating profit growth of 38%, free cash flow rose 50%.
Looking forward to this year, Tencent said the company plans to focus on the core social and communications platform to expand ecosystems to deepen the "connection" strategy, including the social platform to add more services and further provide convenience, expand the popularity of major smart phone games, Advertising market share to promote the growth of digital content subscription user base, by covering more online and offline consumption scenarios to improve the frequency of payment, as well as the development of emerging technology areas such as machine learning and cloud services.
"We are investing in cutting-edge technology (such as artificial intelligence and machine learning) to lay out the future" connection "strategy." The company also said, "We will use the machine to learn in the digital content service personalized recommendation to enhance advertising targeting, Social interaction (such as dynamic masking), and cost savings (such as optimizing customer service needs).
The company announced on Wednesday, 2016 in January-December net profit of 410.95 billion yuan, compared with 28.86 billion yuan in the same period last year, basically in line with Thomson Reuters 26 analysts forecast median 43.212 billion yuan.
The fourth quarter net profit of 10.529 billion yuan, up 47% year on year, thanks to the rapid growth of advertising and payment business, but compared with the previous quarter, the fourth quarter net profit fell 1%.
Tencent said that last year's revenue to achieve 48% year on year growth, reaching 15.19 billion yuan, mainly by smart phone games, social and effect advertising, digital content sales and emerging business (such as payment-related services) to promote.
However, due to changes in income structure, operating margin fell by 2 points to 37%, operating profit growth of 38%, free cash flow rose 50%.
Looking forward to this year, Tencent said the company plans to focus on the core social and communications platform to expand ecosystems to deepen the "connection" strategy, including the social platform to add more services and further provide convenience, expand the popularity of major smart phone games, Advertising market share to promote the growth of digital content subscription user base, by covering more online and offline consumption scenarios to improve the frequency of payment, as well as the development of emerging technology areas such as machine learning and cloud services.
"We are investing in cutting-edge technology (such as artificial intelligence and machine learning) to lay out the future" connection "strategy." The company also said, "We will use the machine to learn in the digital content service personalized recommendation to enhance advertising targeting, Social interaction (such as dynamic masking), and cost savings (such as optimizing customer service needs).
The company announced on Wednesday, 2016 in January-December net profit of 410.95 billion yuan, compared with 28.86 billion yuan in the same period last year, basically in line with Thomson Reuters 26 analysts forecast median 43.212 billion yuan.
The fourth quarter net profit of 10.529 billion yuan, up 47% year on year, thanks to the rapid growth of advertising and payment business, but compared with the previous quarter, the fourth quarter net profit fell 1%.