Hong Kong-listed Tencent Holdings Limited, China's biggest instant message service provider, said on Aug 23 that its first half revenue more than doubled year on year, led by growth in its Internet value-added services like online games and voice chat.

But shares of Tencent fell on Aug 23 as the company said it expects enforcement of China Mobile's tougher measures on its service providers will hurt its wireless value-added services, resulting in reduced growth of subscriptions and a loss of existing customers. Its shares fell 2.31 percent yesterday to HK$16.90. First half revenues rose by 112.9 percent from a year earlier to 1.350 billion yuan. Net profits hit 517.6 million yuan, a year-on-year increase of 82.3 percent.

Nearly 66 percent of the revenue came from its Internet value-added services like its online identity and community business, including QQ Show, QQ Pet, Qzone and online games. Despite the growth, Tencent officials said they are faced with a lot of pressure in the wireless business and increasing competition in the online game business.

"Our current priorities are to manage the challenges in the wireless sector proactively and strengthen our competitiveness in online games," said Ma Huateng, chairman and chief executive officer of Tencent. "At the same time, we will continue to invest in research and development to foster the growth of our online platforms and to strengthen our overall market position over the long run," Ma said.

Source:佚名