Analysts Unable To Tell Exactly How Much WeChat Is Generating For Tencent
The maker of the behemoth Chinese chat app WeChat, Tencent has today pronounced its earnings for the three-month period ending in June. Its profit hit the $3.3 billion mark whereas the Quarterly revenue rose to 56 percent. As a matter of fact, these results are predictably stellar. It is a clear representation of an about five-year period of almost uninterrupted quarterly growth for the provider.
However, the engine that has been exciting the various investors remains a black box. As a matter of fact, WeChat has had quite a major influence on the Chinese culture. Mobile payments, QR codes and online publishing are gaining great popularity among the masses.
To this point in time, it hasn’t yet come out pretty clearly how much money the app has been generating for its parent company. The manufacturer’s financial disclosures have neither provided a specific monetary figure suggesting its value nor hinted at the app’s revenue potential.
A large number of analysts share the opinion that it does really matter since WeChat is headed for great success regardless of what happens. It will continue growing bigger and bigger in China despite the provider’s oblique financial disclosures. They added that the company’s stock market-tear was at its initial stages.
As a matter of fact, WeChat is definitely more than just a WhatsApp-like chat app. It’s a do-everything, Swiss-army-knife app which has with the passage of time evolved to become a major part of everyday life in China.
Currently, it takes pride in the fact that it has about 963 million monthly users as was clearly outlined by a recent report.
Matthew Brennan has over some time been tracking WeChat’s changes at China Channel and he recently spoke in relation to WeChat’s indirect influence on Tencent’s revenue growth.
He opined, “When you go into the game, it becomes all about playing with your WeChat friends, and looking at their scores and achievements.”
WeChat has lately started making meaningful contributions to Tencent’s revenue and the analysts commenting on the matter pointed to some two primary streams.