Tencent Announces 2013 Fourth Quarter and Annual Results

           Tencent Announces 2013 Fourth Quarter and Annual Results

PR Newswire

HONG KONG, March 19, 2014

HONG KONG, March 19, 2014 /PRNewswire/ -- Tencent Holdings Limited ("Tencent"
or the "Company", SEHK 00700), a leading provider of comprehensive Internet
services in China, today announced the unaudited consolidated results for the
fourth quarter of 2013 and audited consolidated results for the year ended
December 31, 2013.

Highlights of 2013 full year:

  oTotal revenues were RMB60,437 million (USD 9,913 million[1]), an increase
    of 38% over the year ended December 31, 2012 ("YoY").
  oOperating profit was RMB19,194 million (USD3,148 million), an increase of
    24% YoY. Operating margin decreased to 32% from 35% last year.
  oNon-GAAP operating profit[2] was RMB20,768 million (USD3,406 million), an
    increase of 22% YoY. Non-GAAP operating margin decreased to 34% from 39%
    last year.
  oProfit attributable to equity holders of the Company for the year was
    RMB15,502 million (USD2,543 million), an increase of 22% YoY.
  oNon-GAAP profit attributable to equity holders of the Company for the year
    was RMB17,063 million (USD2,799 million), an increase of 19% YoY.
  oBasic earnings per share were RMB8.464. Diluted earnings per share were
    RMB8.298.

[1] Figures stated in USD are based on USD1 to RMB6.0969
[2]  See "Non-GAAP Financial Measures" section for more details on the reasons
     for presenting these measures

Highlights of the Fourth Quarter of 2013:

  oTotal revenues were RMB16,970 million (USD2,783 million), an increase of
    9% over the third quarter of 2013 ("QoQ") or an increase of 40% over the
    fourth quarter of 2012 ("YoY").
  oOperating profit was RMB4,751 million (USD779 million), a decrease of 1%
    QoQ or an increase of 28% YoY. Operating margin decreased to 28% from 31%
    of the third quarter of 2013.
  oNon-GAAP operating profit was RMB5,325 million (USD873 million), stable
    QoQ or an increase of 23% YoY. Non-GAAP operating margin decreased to 31%
    from 34% of the third quarter of 2013.
  oProfit attributable to equity holders of the Company for the quarter was
    RMB3,911 million (USD641 million), an increase of 1% QoQ or an increase of
    13% YoY.
  oNon-GAAP profit attributable to equity holders of the Company for the
    quarter was RMB4,498 million (USD738 million), an increase of 3% QoQ or an
    increase of 11% YoY.
  oBasic earnings per share were RMB2.125. Diluted earnings per share were
    RMB2.092.

Mr. Ma Huateng, Chairman and CEO of Tencent, said, "During 2013, we achieved
sustained growth in revenue and earnings, while further embracing mobile
internet and starting mobile monetization. We migrated our flagship QQ service
from a primarily PC to a primarily smart phone experience, and enhanced our
market-leading Weixin/WeChat app from a communications tool to a
multi-functional platform, through initiatives such as smart phone games,
Official Accounts, and Weixin Payment. Strategically, our partnerships with
vertical category leaders such as Dianping in local life services, JD.com in
eCommerce, and Sogou in search, provide best-in-class products to our users
while building a diversified ecosystem for the industry. We will further
expand our mobile leadership via app distribution and O2O services; invest in
long term opportunities such as online video, online payment and WeChat
international expansion; and deepen our integration with key strategic
partners."

Financial Review for the Fourth Quarter of 2013

- VAS. VAS revenues increased 3% QoQ to RMB11,932 million and represented
70.3% of our total revenues for the fourth quarter of 2013. Online games
revenues remained broadly stable QoQ at RMB8,475 million. This mainly
reflected the growth and full quarter contribution of revenues from smart
phone games integrated with Mobile QQ and Weixin, the increased popularity of
LoL across China and international markets, and contributions from new
domestic PC game titles such as Blade and Soul, offset by weaker seasonality
in China in the fourth quarter. Social networks revenues increased by 8% QoQ
to RMB3,457 million. This was primarily driven by the growth and full quarter
contribution of platform revenues from smart phone games integrated with
Mobile QQ and Weixin, partly offset by a decline in subscription revenues.

- Online advertising. Online advertising revenues increased 8% QoQ to
RMB1,497 million and represented 8.8% of our total revenues. This primarily
reflected growth in revenues from online video advertising and from
performance-based advertising, which more than offset the revenue impact of
transferring our online search business to Sogou in September 2013.

- eCommerce transactions. eCommerce transactions revenues increased 41% QoQ
to RMB3,324 million and represented 19.6% of our total revenues. This was
mainly driven by growth in our principal eCommerce transactions volume as a
result of seasonal effects, including seasonal promotional activities towards
the end of the year.

Other Key Financial Information for the Fourth Quarter of 2013

Share-based compensation was RMB463 million for the fourth quarter of 2013 as
compared with RMB478 million for the previous quarter.

Capital expenditure was RMB1,679 million for the fourth quarter of 2013 as
compared with RMB1,621 million for the previous quarter.

The Company didn't repurchase any shares on the Stock Exchange during the
fourth quarter of 2013 and the previous quarter.

As at December 31, 2013, net cash position totaled RMB36,218 million which
excluded borrowings of RMB5,912 million and long-term notes payable of
RMB9,141 million.

As at December 31, 2013, the total number of shares of the Company in issue
was 1.862 billion.

Strategic Highlights

In 2013, we accelerated the mobilisation of our services and reinforced our
leadership in mobile applications in China. Building on our strengths in
communications and social platforms on mobile devices, we expanded the user
base of various mobile applications, such as news, music and utilities, and
launched new services on our core mobile platforms, such as Game Center and
Weixin Payment, which enhanced user engagement, while opening up monetisation
opportunities. We also extended our leadership in online games and open
platforms, while expanding our online advertising business and our eCommerce
transactions business.

We forged landmark transactions to further develop our search and eCommerce
businesses. In September 2013, we announced a strategic partnership with
Sogou for our search business, under which we invested in Sogou and merged our
SoSo search-related businesses and certain other assets with Sogou. In March
2014, we announced a strategic partnership with JD.com for our eCommerce
business, under which we invested in JD.com and merged our relevant eCommerce
initiatives with JD.com. In addition to these two transactions which involve
transfer of some of our businesses to our partners, we entered into other
strategic transactions with partners including CSC, Dianping and Dididache.
The strategic transactions with Sogou, JD.com and other partners entail close
cooperation at both an investor and a business level, and reinforce our "open,
win-win" philosophy of working with leading teams to create innovative
products for users, and to build a healthy, diversified ecosystem for the
Internet industry. These transactions also free up our internal resources,
both human and financial, to focus on leveraging the core strengths of our
platforms and to develop new products such as O2O services, while enabling us
to continue benefiting from the growth potential of the underlying industries
via our significant equity stakes.

Divisional and Product Highlights

  oKey platform statistics:

       oMonthly active Instant Messaging ("IM") user accounts were 808
         million, a decrease of 1% QoQ or an increase of 1% YoY.
       oPeak simultaneous online IM user accounts were 180 million, an
         increase of 1% QoQ or an increase of 2% YoY.
       oCombined MAU of Weixin and WeChat[3] were 355 million, an increase of
         6% QoQ or an increase of 121% YoY.
       oMonthly active Qzone user accounts were 625 million, an increase of
         0.3% QoQ or an increase of 4% YoY.
       oPeak simultaneous online QQ Game Platform user accounts were 8.5
         million, an increase of 4% QoQ or a decrease of 3% YoY.
       oFee-based VAS registered subscriptions were 88.6 million, stable QoQ
         or a decrease of 15% YoY.

     In view of the evolution of Weixin and WeChat from communications
     services to multi-functional platforms, we have revised the definition of
     combined MAU of Weixin and WeChat since the fourth quarter of 2013 to
     denote the total number of user accounts that sent out one or more
[3] messages via Weixin/WeChat or conducted other proactive operations on
     Weixin/WeChat, such as logging into Game Center or updating Moments, at
     least once during the last calendar month prior to the relevant date.
     Comparative figures have been restated to conform to the current period's
     presentation.

Key Platforms

In 2013, QQ and Qzone maintained their leading positions in communications and
social networking in China. User account growth decelerated as users continued
to shift their traffic from PC to mobile devices because fewer mobile users
than PC users employ multiple accounts and mobile users' usage pattern is more
spread out across day parts as compared to PC users. For QQ, aggregate MAU
increased modestly by 1% year-on-year to 808 million at the end of 2013, while
PCU increased by 2% year-on-year to 180 million. During the year, we
significantly expanded the mobile user base of QQ with enhanced user
experience and enriched services such as Game Center. At the end of 2013,
smart device MAU[4] of QQ increased by 74% year-on-year to 426 million. For
Qzone, aggregate MAU increased by 4% year-on-year to 625 million at the end of
2013. The year saw increased user activity and engagement on mobile. This was
evidenced by a significant growth in smart device MAU of Qzone, which
increased by 63% year-on-year to 416 million at the end of 2013, as well as a
substantial increase in photo uploads on Mobile Qzone.

Combined MAU of Weixin and WeChat reached 355 million at the end of 2013.
During the year, Weixin enjoyed rapid expansion and enhanced user engagement
in China. With the launch of new services, such as Game Center, Official
Accounts and Weixin Payment, as well as the increasing adoption of Moments,
Weixin is evolving from a pure communications service into a multi-functional
platform. In international markets, WeChat achieved robust aggregate user
growth, but we are increasingly focused on driving engagement in specific
target geographic regions. Looking ahead, we aim to further improve user
engagement on Weixin and WeChat by enhancing the core communications and
social functions. We will also leverage Official Accounts and Weixin Payment
to explore O2O and mobile eCommerce opportunities in China.

For our core media platforms, QQ.com, Tencent Microblog and Tencent Video, we
sought to upgrade our content and enhance user experience, especially on
mobile devices. For example, Tencent News achieved significant user growth
during the year via mobile applications and plug-ins on Mobile QQ and Weixin.
Going forward, we will further develop our portfolio of mobile media
applications and enhance the monetisation of our mobile media traffic. We
will also invest more aggressively in video content to further expand Tencent
Video's market presence, as we believe the online video industry is still at a
formative stage and our massive media traffic provides us with competitive
advantage.

     Since the fourth quarter of 2013, smart device MAU of QQ has been revised
     to denote the total number of QQ MAU that sent out one or more messages
     via Mobile QQ application on iOS or Android devices, or conducted other
[4] proactive operations via Mobile QQ application on iOS or Android devices,
     such as logging into Game Center or updating Qzone, at least once during
     the last calendar month prior to the relevant date. Comparative figures
     have been restated to conform to the current period's presentation.

VAS

In 2013, our open platforms continued to create value for the Internet
industry, and enjoyed significant growth in users and revenues as a result.
We believe we have become the partner of choice for application developers in
China, offering access to our large logged-in user base, the network effect of
our leading social platforms, our targeted advertising solutions, and our
proprietary cloud-based infrastructure support. We are extending our open
platforms to mobile and targeting to build a cross-platform ecosystem.

The weakness in our VAS subscription services continued in 2013. This was
primarily due to rapid adoption of smart phones by users, whereas our paid
subscription services are traditionally focused on PC or feature phones. The
weakness was also driven by our stringent measures to clean up certain user
accounts acquired through mobile channels with low possibility of fee
collection. To better align our VAS subscription services with the mobile
Internet opportunities, we unified the product teams and product experiences
between PC and smart phones, and introduced smart phone-oriented subscription
services, such as Super VIP, during the year.

For online games, we consolidated our leading position in China in 2013.
While major domestic PC game titles continued to deliver solid growth, we
benefited significantly from increased contribution from international markets
via LoL, and from the launch of new domestic PC game titles. In the
fast-growing mobile game market, we launched our Game Center on Mobile QQ and
Weixin, including a range of self-developed and third-party smart phone
games. Riding on the extensive user reach and social network effect offered
by Mobile QQ and Weixin, these games generated a revenue contribution of over
RMB600 million for the fourth quarter of 2013, validating the distribution
capabilities of our mobile platforms. We will continue to enrich our game
portfolios for PC and mobile. In addition, we will strengthen our mobile
distribution platforms to complement the rapid growth of our mobile games.

Online Advertising

Leveraging the growth of our media platforms and social platforms, our online
advertising business expanded further in 2013, with revenue growth across the
brand display and performance display categories. For brand display
advertising, revenues from our online video platform achieved strong growth,
driven by increased inventories, improved pricing and enhanced recognition
from advertisers. Traditional brand advertising also registered solid revenue
growth. For performance display advertising, revenues from our social
platforms benefited from growth in impression volume and improved targeting.
For search advertising, revenues declined as we transferred our search
business to Sogou in September 2013. We believe Sogou is well-positioned to
grow its share in the PC and mobile search market after the completion of its
integration with SoSo towards the end of 2013.

Longer term, we believe the fast-growing user base and traffic of our mobile
platforms will increasingly become an attractive proposition for advertisers.
We are exploring different formats of mobile advertising on our platforms to
capture the emerging opportunities.

eCommerce Transactions

In 2013, our principal eCommerce transactions business experienced strong
growth in transaction volume and revenues as we enhanced our geographic
presence, expanded our product range and improved our eCommerce
infrastructure. Our marketplaces also registered growth in fee income as we
improved product selection and customer service.

Under our strategic partnership with JD.com, we transferred our Wanggou B2C
and Paipai C2C marketplace businesses, logistics personnel and assets, as well
as a minority stake in Yixun to JD.com, and JD.com has a call option to
acquire our remaining stake in Yixun in future. We will support JD.com's
growth in the physical goods eCommerce business by offering level 1 access
points at Mobile QQ and Weixin, as well as support from other key platforms to
JD.com. Both parties will also cooperate on online payment services to
improve users' online shopping experience.

Outlook and strategies for 2014

During 2014, we intend to leverage our leading communications and social
applications to: (1) support a broad portfolio of associated applications
spanning activities such as games, entertainment, information, and utilities;
(2) popularise our application stores and application distribution platforms;
and (3) build a prosperous ecosystem for O2O and mobile eCommerce activities.
We also strive to leverage our platforms to accelerate the growth of mobile
games, while reinforcing our leadership in PC client games.

We will continue investing heavily in certain long-term projects we deem
strategic, including: (1) purchasing content and improving user experience for
our online video service; (2) marketing and popularising our WeChat service in
selected international markets; and (3) encouraging uptake of our payment
solutions, for example via subsidies to consumers and merchants.

We aim to deepen our relationships with strategic business partners such as
CSC, Dianping, Dididache, JD.com and Sogou, among others, providing our
partners with our full platform support and bringing their products and
services to our users.

About Tencent

Tencent uses technology to enrich the lives of Internet users. Every day,
hundreds of millions of people communicate, share experiences, consume
information, seek entertainment, and shop online through our integrated
platforms. Our diversified services include QQ, Weixin and WeChat for
communications; Qzone for social networking; QQ Game Platform for online
games; QQ.com for information; as well as our eCommerce services.

Our company was founded in Shenzhen in 1998 and went public on the Main Board
of the Stock Exchange of Hong Kong Limited on in 2004. The Company has been
one of the 50 constituent stocks of the Hang Seng Index since June 10, 2008,
under stock code 00700. We seek to evolve with the Internet by investing in
innovation, providing a hospitable environment for our partners, and staying
close to our users. 

For more information, please visit www.tencent.com/ir

For enquiries, please contact:

Catherine Chan Tel: (86) 755 86013388 ext 88369 or (852) 31485100 Email:
cchan@tencent.com
Jane Yip Tel: (86) 755 86013388 ext 81374 or (852) 31485100 Email:
janeyip@tencent.com

Non-GAAP Financial Measures

To supplement the consolidated results of the Company prepared in accordance
with IFRS, certain non-GAAP financial measures, including non-GAAP operating
profit, non-GAAP operating margin, non-GAAP profit for the period, non-GAAP
net margin and non-GAAP profit attributable to equity holders of the Company,
have been presented in this press release. These unaudited non-GAAP financial
measures should be considered in addition to, not as a substitute for,
measures of the Company's financial performance prepared in accordance with
IFRS. In addition, these non-GAAP financial measures may be defined
differently from similar terms used by other companies.

The Company's management believes that the non-GAAP financial measures provide
investors with useful supplementary information to assess the performance of
the Company's core operations by excluding certain non-cash items and certain
impact of acquisitions.

Forward-Looking Statements

This press release contains forward-looking statements relating to the
business outlook, forecast business plans and growth strategies of the
Company. These forward-looking statements are based on information currently
available to the Company and are stated herein on the basis of the outlook at
the time of this press release. They are based on certain expectations,
assumptions and premises, some of which are subjective or beyond our control.
These forward-looking statements may prove to be incorrect and may not be
realized in future. Underlying the forward-looking statements is a large
number of risks and uncertainties. Further information regarding these risks
and uncertainties is included in our other public disclosure documents on our
corporate website.

CONSOLIDATED INCOME STATEMENT
RMB in millions, unless specified
                                       Unaudited        Audited
                                       4Q2013  4Q2012   2013     2012
Revenues                               16,970  12,153   60,437   43,894
 VAS                                11,932  9,390    44,985   35,718
 Online advertising                 1,497   947      5,034    3,382
 eCommerce transactions             3,324   1,684    9,796    4,428
 Others                             217     132      622      366
Cost of revenues                       (8,198) (5,273)  (27,778) (18,207)
Gross profit                           8,772   6,880    32,659   25,687
Gross margin                           52%     57%      54%      59%
Interest income                        377     266      1,314    836
Other gains/(losses), net              405     (202)    904      (284)
Selling and marketing expenses         (2,033) (1,095)  (5,695)  (2,994)
General and administrative expenses    (2,770) (2,123)  (9,988)  (7,766)
Operating profit                       4,751   3,726    19,194   15,479
Operating margin                       28%     31%      32%      35%
Finance income/(costs), net            6       (63)     (84)     (348)
Share of (losses)/profit of associates (14)    (29)     213      (54)
Share of losses of joint ventures      (4)     (12)     (42)     (26)
Profit before income tax               4,739   3,622    19,281   15,051
Income tax expense                     (808)   (151)    (3,718)  (2,266)
Profit for the period                  3,931   3,471    15,563   12,785
Net margin                             23%     29%      26%      29%
Attributable to:
 Equity holders of the Company      3,911   3,464    15,502   12,732
 Non-controlling interests          20      7        61       53
Non-GAAP profit attributable to equity
                                       4,498   4,068    17,063   14,286
 holders of the Company
Earnings per share (GAAP)
- basic (RMB)                          2.125   1.890    8.464    6.965
- diluted (RMB)                        2.092   1.856    8.298    6.833



CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
RMB in millions, unless specified
                                          Unaudited      Audited
                                          4Q2013 4Q2012  2013   2012
Profit for the period                     3,931  3,471   15,563 12,785
Other comprehensive income, net of tax:
Items that may be subsequently

 reclassified to profit or loss
Share of other comprehensiveincome
                                          48     -       48     -
of associates
Net gains from changes in fair value of
                                          830    103     2,825  824
 available-for-sale financial assets
Currency translation differences          (50)   (4)     (60)   10
Total comprehensive income for the period 4,759  3,570   18,376 13,619
Attributable to:
 Equity holders of the Company         4,746  3,564   18,327 13,567
 Non-controlling interests             13     6       49     52



OTHER FINANCIAL INFORMATION
RMB in millions, unless specified
                               Unaudited                     Audited
                               4Q2013   3Q2013   4Q2012      2013     2012
EBITDA (a)                     5,184    5,257    4,363       20,566   17,540
Adjusted EBITDA (a)            5,467    5,601    4,641       21,734   18,445
AdjustedEBITDAmargin(b)    32%      36%      38%         36%      42%
Interest expense               105      99       104         394      327
Net cash (c)                   36,218   34,400   27,381      36,218   27,381
Capital expenditures (d)       1,679    1,621    1,784       5,799    4,493
Note:

(a) EBITDA consists of operating profit less interest income, and plus other
losses/(gains), net, depreciation of fixed assets and investment properties
and amortisation of intangible assets. Adjusted EBITDA consists of EBITDA plus
equity-settled share-based compensation expenses.

(b) Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by
revenues.

(c) Net cash represents period end balance and is calculated as cash and cash
equivalents, term deposits, and restricted cash pledged for secured bank
borrowings, minus borrowings and long-term notes payable.

(d) Capital expenditures consist of additions (excluding business
combinations) to fixed assets, construction in progress, land use rights and
intangible assets (excluding game and other content licences).



CONSOLIDATED STATEMENT OF FINANCIAL POSITION
 In RMB millions (unless otherwise stated)         Audited
                                                    As at 31 December
                                                    2013       2012
ASSETS
Non-current assets
Fixed assets                                       8,693      7,403
Construction in progress                            2,041      534
Investment properties                               -          22
Land use rights                                     871        794
Intangible assets                                   4,103      4,719
Interests in associates                             12,170     7,310
Investment in joint ventures                        9          35
Deferred income tax assets                          431        169
Available-for-sale financial assets                 12,515     5,633
Prepayments, deposits and other assets              1,296      1,236
Term deposits                                       11,420     10,892
                                                    53,549     38,747
Current assets
Inventories                                         1,384      568
Accounts receivable                                 2,955      2,354
Prepayments, deposits and other assets              5,365      3,878
Term deposits                                       19,623     13,806
Restricted cash                                     4,131      2,520
Cash and cash equivalents                           20,228     13,383
                                                    53,686     36,509
Total assets                                        107,235    75,256
EQUITY
Equity attributable to the Company's equity holders
Share capital                                       -          -
Share premium                                       2,846      2,880
Shares held for share award schemes
                                                    (871)      (667)

Other reserves                                      3,746      816
Retained earnings                                   52,224     38,269
                                                    57,945     41,298
Non-controlling interests                           518        850
Total equity                                        58,463     42,148
LIABILITIES
Non-current liabilities




Borrowings                                          3,323      2,106
Long-term notes payable                             9,141      7,517
Deferred income tax liabilities                     1,441      1,312
Long-term payables                                  1,600      1,508
                                                    15,505     12,443
Current liabilities
Accounts payable                                    6,680      4,212
Other payables and accruals                         10,246     6,301
Borrowings                                          2,589      1,077
Current income tax liabilities                      1,318      420
Other tax liabilities                               593        540
Deferred revenue                                    11,841     8,115
                                                    33,267     20,665
Total liabilities                                   48,772     33,108
Total equity and liabilities                        107,235    75,256



RECONCILIATIONS OF IFRS TO NON-GAAP RESULTS
                              Adjustments
                     As       Equity-settled Cash-settled     Losses/(Gains) Amortisationof               Special
RMB  in  millions,                                                                           Impairment
unless specified     reported share-based    share-based      ondeemed      intangible      provision(d) dividend   Non-GAAP
                              compensation                    disposal(b)
                                             compensation(a)                assets(c)                    Income(e)
Year ended 31  December 2013
Operating profit     19,194   1,168          618              -              139             87            (438)      20,768
Profit for the year  15,563   1,168          618              -              240             87            (438)      17,238
Profitattributable
                     15,502   1,155          547              -              210             87            (438)      17,063
to equity holders
Operating margin     32%                                                                                              34%
Net margin           26%                                                                                              29%
Year ended 31 December 2012
Operating profit     15,479   905            108              5              247             699           (390)      17,053
Profit for the year  12,785   905            108              5              286             699           (390)      14,398
Profitattributable
                     12,732   890            95               5              255             699           (390)      14,286
toequityholders
Operating margin     35%                                                                                              39%
Net margin           29%                                                                                              33%
Note:

(a) Including put options granted to employees of investees on their shares and shares to be issued under investees'
share-based incentive plans which can be acquired by the Group, and other incentives

(b) Losses/(Gains) on deemed disposal of previously held interests in associates

(c) Amortisation of intangible assets resulting from acquisitions, net of related deferred tax

(d) Impairment provision for associates and available-for-sale financial assets

(e) Special dividend income from Mail.ru



RECONCILIATIONS OF IFRS TO NON-GAAP RESULTS
                                               Adjustments
                                      As       Equity-settled Cash-settled     Losses/(Gains) Amortisationof               Special
                                                                                                              Impairment
RMB  in  millions, unless specified   reported share-based    share-based      ondeemed      intangible      provision(d) dividend   Non-GAAP
                                               compensation                    disposal(b)
                                                              compensation(a)                assets  (c)                   Income(e)
Unaudited three months ended 31 December 2013
Operating profit                      4,751    283            180              -              24              87            -          5,325
Profit for the period                 3,931    283            180              -              66              87            -          4,547
Profit attributable to equity holders 3,911    278            160              -              62              87            -          4,498
Operating margin                      28%                                                                                              31%
Net margin                            23%                                                                                              27%
Unaudited three months ended 30 September 2013
Operating profit                      4,815    344            134              -              38              -             -          5,331
Profit for the period                 3,877    344            134              -              58              -             -          4,413
Profitattributabletoequityholders 3,867    340            119              -              50              -             -          4,376
Operating margin                      31%                                                                                              34%
Net margin                            25%                                                                                              28%
Unaudited three months ended 31 December 2012
Operating profit                      3,726    278            25               -              40              251           -          4,320
Profit for the period                 3,471    278            25               -              65              251           -          4,090
Profit attributable to equity holders 3,464    275            22               -              56              251           -          4,068
Operating margin                      31%                                                                                              36%
Net margin                            29%                                                                                              34%
Note:

(a) Including put options granted to employees of investees on their shares and shares to be issued under investees' share-based incentive
plans which can be acquired by the Group, and other incentives

(b) Losses/(Gains) on deemed disposal of previously held interests in associates

(c) Amortisation of intangible assets resulting from acquisitions, net of related deferred tax

(d) Impairment provision for associates and available-for-sale financial assets

(e) Special dividend income from Mail.ru



SOURCE Tencent Holdings Limited

Website: http://www.tencent.com
Website: http://www.tencent.com/ir
 
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