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Technology Services
Tencent Holdings Ltd.
- 290.00 HKD
- -0.40
- -0.14%
China
Nov 16, 2018Ticker
HKG(700)Prev. close
290.40Market cap (HKD)
2,764.68BMarket cap (USD)
353,011MShares
9,520.23M
In the news
- Chinese consumers send Tencent disturbing message on apps Nov 19, 2018
- Asia's esports scene spawns raft of new businesses Nov 18, 2018
- Corporate Japan struggles to scale up as longevity limits dynamism Nov 18, 2018
- Tencent shares under pressure ahead of results Nov 13, 2018
- DBS, UOB open payments front in ride-hailing battle Nov 12, 2018 See more articles on Tencent Holdings Ltd.
Company Background
Tencent Holdings is a Chinese Internet services giant based in Shenzhen, Guangdong Province. It is the biggest rival of Alibaba Group, the country's largest e-commerce company. Baidu, Alibaba and Tencent are commonly known collectively as BAT in China.
Tencent was established in 1998. With the hit of its social network service QQ, users of its smartphone chat app WeChat surged, reaching 549 million at the end of March 2015. WeChat is gaining popularity with young Chinese.
As its revenue mainly comes from PC and smartphone games as well as advertising, increasing QQ and WeChat users is likely to lead to higher earnings.
Ma Huateng, founder and CEO of Tencent, is a young entrepreneur from Shantou, the coastal eastern part of Guangdong Province, where many competent overseas Chinese have their roots. He is also a major shareholder of Tencent, owning some 10% of the company.
Business Summary
Tencent Holdings Ltd. is an investment company, which engages in the provision of value-added services and online advertising services. It operates through the following segments: Value-Added Services, Online Advertising, and Others. The Value-added Services segment involves online and mobile games, community value-added services, and applications across various Internet and mobile platforms. The Online Advertising segment represents display based and performance based advertisements. The Other segment consists of trademark licensing, software development services, software sales, and other services. The company was founded by Yi Dan Chen, Hua Teng Ma, Chen Ye Xu, Li Qing Zeng, and Zhi Dong Zhang on November 23, 1999 and is headquartered in Shenzhen, China.
Financial Highlights
| Dec 2017 | HKD | USD |
| Revenue | 274,157.94M | 35,180.85M |
| Gross Profit | 134,824.68M | 17,301.14M |
| Operating income | 76,359.72M | 9,798.73M |
| Income before tax | 100,772.87M | 12,931.50M |
| Net income | 82,457.24M | 10,581.18M |
| EBITDA | 103,424.97M | 13,271.83M |
| Diluted EPS | 8.64 | 1.10 |
| Dividends Per Share | 0.88 | 0.11 |
| Total Assets | 665,853.41M | 85,176.90M |
| Total liabilities | 333,218.41M | 42,625.76M |
| Total equity | 307,402.83M | 39,323.40M |
| Operating cash flow | 128,774.43M | 16,524.76M |
| Currency in HKD | Currency in USD |
Historical Data
| Dec 2013 | Dec 2014 | Dec 2015 | Dec 2016 | Dec 2017 | |
| Revenue | 76,254.46M | 99,338.25M | 126,879.52M | 177,527.17M | 274,157.94M |
| Gross Profit | 40,057.02M | 59,129.49M | 73,456.24M | 96,672.61M | 134,824.68M |
| Operating income | 21,418.92M | 32,856.42M | 44,915.96M | 58,308.75M | 76,359.72M |
| Income before tax | 24,111.43M | 36,950.42M | 48,116.84M | 63,283.88M | 100,772.87M |
| Net income | 19,559.15M | 29,965.58M | 35,531.64M | 48,016.15M | 82,457.24M |
| EBITDA | 25,948.49M | 38,898.62M | 53,092.70M | 73,064.71M | 103,424.97M |
| Diluted EPS | 2.09 | 3.20 | 3.76 | 5.05 | 8.64 |
| Dividends Per Share | 0.24 | 0.36 | 0.47 | 0.61 | 0.88 |
| Total Assets | 137,345.08M | 213,953.36M | 366,189.09M | 441,681.31M | 665,853.41M |
| Total liabilities | 62,466.49M | 111,300.34M | 220,462.02M | 233,896.45M | 333,218.41M |
| Total equity | 74,215.14M | 100,014.31M | 143,262.48M | 194,817.76M | 307,402.83M |
| Operating cash flow | 34,157.23M | 84,804.75M | 59,478.43M | 79,399.88M | 128,774.43M |
| Dec 2013 | Dec 2014 | Dec 2015 | Dec 2016 | Dec 2017 | |
| Revenue | 9,830.85M | 12,810.09M | 16,366.11M | 22,869.97M | 35,180.85M |
| Gross Profit | 5,164.22M | 7,625.00M | 9,475.07M | 12,453.86M | 17,301.14M |
| Operating income | 2,761.36M | 4,236.97M | 5,793.68M | 7,511.63M | 9,798.73M |
| Income before tax | 3,108.48M | 4,764.91M | 6,206.56M | 8,152.55M | 12,931.50M |
| Net income | 2,521.60M | 3,864.19M | 4,583.20M | 6,185.69M | 10,581.18M |
| EBITDA | 3,345.32M | 5,016.14M | 6,848.39M | 9,412.57M | 13,271.83M |
| Diluted EPS | 0.27 | 0.41 | 0.48 | 0.65 | 1.10 |
| Dividends Per Share | 0.03 | 0.04 | 0.06 | 0.07 | 0.11 |
| Total Assets | 17,713.37M | 27,589.62M | 47,249.28M | 56,967.98M | 85,176.90M |
| Total liabilities | 8,056.29M | 14,352.35M | 28,446.16M | 30,167.92M | 42,625.76M |
| Total equity | 9,571.51M | 12,897.00M | 18,485.12M | 25,127.56M | 39,323.40M |
| Operating cash flow | 4,403.61M | 10,935.94M | 7,672.08M | 10,228.70M | 16,524.76M |
Valuation Measures
| Dec 2017 | |
| PER | 46.34 |
| ROA | 14.89% |
| ROE | 32.83% |
| Operating margin | 27.85% |
| Profit margin | 30.07% |
Key executives
- Chairman & Chief Executive Officer: Hua Teng Ma
- President & Executive Director: Chi Ping Lau
- COO & President-Interactive Entertainment Group: Yu Xin Ren
- Chief Financial Officer & Senior Vice President: Shek Hon Lo
- Chief Information Officer: Chen Ye Xu
Shareholders
- Naspers Ltd. (31.1%)
- MA HUA TENG PONY (8.6%)
- The Vanguard Group, Inc. (2.0%)
- BlackRock Fund Advisors (1.3%)
- T. Rowe Price Associates, Inc. (1.2%)
- Norges Bank Investment Management (0.8%)
- Capital Research & Management Co. (World Investors) (0.6%)
- Schroder Investment Management Ltd. (0.5%)
- JPMorgan Investment Management, Inc. (0.5%)
- Capital Research & Management Co. (Global Investors) (0.5%)
Contact Details
- Website:http://www.tencent.com
- Address: Tencent Building, Kejizhongyi Avenue, Hi-tech Park, Shenzhen, 518057, China
- Phone: +86.755.8601.3388
Related Companies
- TenPay Payment Technology Co., Ltd.
- Image Flag Investment (HK) Ltd.
- Morerespark Ltd.
- Great Summer Ltd.
- Huai River Investment Ltd.
- THL E Ltd.
- THL A17 Ltd.
- Morespark Ltd.
- Dongting Lake Investment Ltd.
- Tencent Growthfund Ltd.
- Qinghai Lake Investment Ltd.
- Thl A13 Ltd.
- China Literature Ltd.
- Shenzhen Tenpay Technology Co., Ltd.
- Image Frame Investment (HK) Ltd.
- Miniclip SA
- Tencent Cloud Computing (Beijing) Ltd.
- Shenzhen Tencent Domain Computer Natwork Co. Ltd.
- Tencent Mobility Ltd.
- Tencent Asset Management Ltd.
- Mount Qinling Investment Ltd.
- Han River Investment Holdings Ltd.
- Tencent Foundation
- Oriental Power Holdings Ltd.
- Ohio River Investment Ltd.
- Miniclip Group SA
- Image Technology Investment Ltd.
- Mount Emei Investment Ltd.
- Hongze Lake Investment Ltd.
- Beijing Starsinhand Technology Co. Ltd.
Competitors
- Baidu, Inc. Sponsored ADR Class A
- Sohu.com Limited Sponsored ADR
- LINE Corp.
- Link Motion, Inc. Sponsored ADR Class A
- SINA Corp.
- BlackBerry Limited
- NetEase, Inc. Sponsored ADR
- Phoenix New Media Ltd. Sponsored ADR Class A
- Alibaba Group Holding Ltd. Sponsored ADR
- Changyou.com Ltd. Sponsored ADR Class A
- iQIYI, Inc. Sponsored ADR Class A
- Electronic Arts Inc.
- NetDragon Websoft Holdings Limited
- Xunlei Ltd. ADR
- Aristocrat Leisure Limited
- Netmarble Corp.
- Snap, Inc. Class A
- Gravity Co Ltd Sponsored ADR
- Weibo Corp Sponsored ADR Class A
- Zynga Inc. Class A
- Spotify Technology SA
- The9 Ltd. Sponsored ADR
- Wuhu Shunrong Sanqi Interactive Entertainment Network Technology Co., Ltd. Class A
- Qutoutiao, Inc. Sponsored ADR Class A
- Renren Inc. Sponsored ADR Class A
- LivePerson, Inc.
- Ideanomics, Inc.
- migme Limited
- Visa Inc. Class A
- Aurora Mobile Ltd. Sponsored ADR Class A
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