TENCENT HOLDINGS ADR (OTCMKTS:TCEHY) has been in a strong uptrend over the last couple of weeks and has outperformed the broader indices, which is a bullish sign. The stock currently trades above all daily moving averages. The stock has been forming higher tops and higher bottoms, indicative of the strong buying interest at every opportunity. The relative strength index continues to form higher highs pointing towards inherent buying interest, which is a bullish signal. Traders on the street believe the stock could head to levels of $20.40 while take support at levels of $18.76 in the near term, which is a positive.


TENCENT HOLDINGS ADR (OTCMKTS:TCEHY) has announced the financial results for recently concluded 3Q2015. One thing that got the attention of all the investors was a whopping 34% hike in yearly revenue performance. As per the reports, it generated $4,181 million or RMB26,594 million revenues in 3Q2015.

Other Financial Highlights

Apart from revenues, it continued the same performance in operating profit as well. The overall operating profit for the third quarter was $1,624 million, 37% higher than the same three-month period last year. Operating margin also touched 39%, a decent increment from last year’s 38 percent. Profit for the period was $1,192 million, 34% higher than the profit reported during the same period in 2014; however, net margin of the company remained unchanged at 29 percent.

The profit available for equity shareholders in 3Q2015 was $1,170 million, up 32% from the last year’s figures. Basic and diluted earnings per share for the quarter were reported as RMB 0.800 and RMB 0.792 respectively.

Non-GAAP numbers, excluding deemed disposals, share-based compensation, and amortization of intangible assets, are as follows-

Operating profit for the same three-month period was $1,653 million, 27% higher than last year’s numbers. The operating margin for 3Q2015 came down to 40% from last year’s 42 percent. The overall profit for this period was $1,328 million, up 28% from the numbers reported in 3Q2014. Profit available for equity shareholders increased 26% to touch $1,302 million.

The senior management team of the company was delighted to announce these results and hoped that the performance would continue to get better with time. According to Ma Huateng, CEO & Chairman, Tencent, the company’s operational performance grew solid during the third quarter. The smartphone gaming division led the way in terms of revenue monetization and helped it post excellent numbers.

Tencent performed well in terms of mobile revenues and online advertising, and will keep them in focus during the coming quarters as well to expand revenue monetization opportunities.