Tencent’s Active Mobile Payment Users Reached 600M in Q416

Monthly active users of Tencent’s mobile payment services and average daily payment transactions through them both surpassed 600 million in December 2016.

Red Packet transfers, however, are counted as payment transactions and account for the largest portion of the total transaction volume, followed respectively by payments to online businesses and at physical locations, according to Tencent management.

The breakdown among WeChat Payment, QQ Wallet and third-party mobile businesses who have added either/both of the two mobile payment services isn’t disclosed.

Payments and cloud services recorded RMB17 billion in revenue in 2016, so far the least profitable segment for Tencent that the combined cost of revenue is as high as RMB14 billion. The company believes their cloud service is the No. 1 in gaming and video segments in China.

Source: Tencent

Tencent’s 2016 revenues increased 41% from the previous year, mainly driven by revenue growth in smartphone games. Tencent recorded RMB70.8 billion in total gaming revenue for 2016, a 25% year-over-year growth. NetEase, its distant competitor in gaming, recorded RMB28 billion in gaming revenues last year.

Smartphone game revenues increased 80% year-over-year to RMB38.4 billion in 2016. ARPU of mobile game is RMB145-155 in the fourth quarter.

Honour of Kings, in-house developed mobile game and similar to Tencent’s own LoL in theme and design, surpassed 50 million daily active users as of the end of 2016.

Social networks revenues, generated from premium subscriptions, virtual items and paid digital content, increased by 54% year-over-year to RMB37 billion, mainly driven by sales of digital content and game-related items.

Tencent Video’s paying users surpassed 20 million in 2016. iQIYI and Youku-tudou, its direct competitors announced 20 million and 30 million paying users in June 2016 and December 2016, respectively. Tencent believes they are the No. 1 in terms of mobile video views.

Daily active users of Karaoke service WeSing reached 35 million as of the end of 2016, more than doubled year-on-year. It monetizes, like many other Chinese Karaoke services and live streaming services, through virtual gift sales.

Daily paying readers of its online literature publishing platform were around 2.5 million, more than doubled year-on-year.

Source: Tencent
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