WeChat Reached 806M MAU in Q216

Source: Tencent
Source: Tencent

WeChat (Weixin in Chinese) saw 34% year-over-year growth in monthly active users to reach 806 million in the second quarter.

Weixin Enterprise Accounts, the version for enterprise launched in April, has registered 20 million customers.

eLoyalty Cards, a new loyalty program for merchants launched in June, has signed up more than two dozen businesses, including multinational consumer goods company Unilever, personal care product chain Watsons, Swedish furniture chain IKEA, hotel chain Days Group (or 7 Days Inn) and Air China.

ARPU range for WeChat and Mobile QQ games was RMB155 – 165.

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Tencent, WeChat’s parent company, reports 52% top-line growth in Q2. Operating margin decreased from 43% to 40% year-over-year.

Value-added subscriptions, including monthly paid packages for gaming, music and video, increased 25% year-over-year. The subscription growth and increased virtual item sales contributed to the social networking revenue growth which is 57%.

The recent merger with China Music Corporation, which owns two major music streaming services (Kugou and Kuwo), has made Tencent’s QQ Music the biggest digital music provider in China. Chinese online music services provide free streaming and make revenues through paid subscriptions, paid downloads, and advertising.

Performance-based advertising, which is powered by Tencent’s self-service ad system, grew 80% year-over-year in revenue, mainly driven by Weixin(WeChat) Moments, Tencent News app, and Weixin(WeChat) Official Accounts. WeChat Moments integrated the self-service ad system in the first quarter this year.

Overall growth in online advertising revenue is 60%. Online advertising margin decreased year-over-year due to content cost increase.

Mobile advertising accounts for 80% of the total advertising revenue, the same as last quarter.

In May NOW, a live video streaming service, was launched. The company had developed several similar services previously but few got much traction.

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