The Chinese tech company topped analysts’ estimates by reporting profits of more than 30 billion yuan ($ 4.3 billion) for the three months ended June, up 28% from the same period last year. Revenue rose 29% to 114.9 billion yuan ($ 16.5 billion).
“They are two different products,” said Chairman and CEO Ma Huateng, also known as Pony Ma. “Weixin is a conversation [app] to serve users on mainland China, while WeChat is a sister product serving users outside mainland China. ”
Industry analysts are worried that Trump’s executive order could hurt online gaming companies in the United States. But the company suggested that company is safe.
“Based on our initial reading and subsequent press releases, the executive order is directed at WeChat in the United States and not at our other companies in the United States,” said Tencent Chief Financial Officer Shek Hon Lo.
“We are in the process of seeking further clarification,” he added.
Tencent is the largest gaming company in the world by revenue. It has released several popular mobile and video games, such as PlayerUnknown’s Battlegrounds, or PUBG. Players in the US spend a lot of money in PUBG – it ranked 10th in the United States by consumer spending last year, according to analytics firm App Annie.
But Tencent tried to convince investors that the company makes very little money in the United States. James Mitchell, a senior executive, said the United States earns less than 2% of global revenue.
Tencent reported that more than half of its revenue last quarter came from so-called Value Added Services, which comprise the company’s lucrative sports portfolio. Financial services and payment apps like WeChat Pay contributed about 25% of revenue, and 16% came from online advertising.
The company’s share has been under pressure since the U.S. executive order was announced on Friday. But shares in New York rose 2.5% after the release of gains on Wednesday.
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