After being offered to the market in March , the American social network company Snap Inc. The total subscriptions of the portal will top million in Sep The Lego Group and the Chinese player team up in January to develop online games and potentially a social network aimed at children.
In January , Tencent and Carrefour reached a strategic cooperation agreement in China. The same happened in September, this time with Luckin Coffee. Given the incredible amount of businesses in which Tencent invests, the company structure is fragmented but not disorganized. We think it useful, however, to focus on the leading top-tier personalities more than in the whole direction. In , Ma was nominated as one of the most influential people from the magazine Times.
Huateng Ma had the idea of the first instant messaging application of the group, OICQ, after seeing the presentation of a similar product by an Israeli company. The CEO is to date one of the most influential people in China, both from an economic point of view he still owns 9. Chenye Xu is a co-founder and the Chief Information Officer of the group.
Chenye worked at Shenzhen Data Telecommunications Bureau, where he gained management experience. David Wallerstein joined Tencent in Before that, he worked for Naspers in China. Before joining the group, he worked at PricewaterhouseCoopers. However, a common characteristic is that the Chinese group tends to be customer-centric.
The value proposition lies precisely in this: being able to satisfy almost any need that a teenager or a young adult might have. Moreover, with some businesses, Tencent reaches the whole Chinese population, both in Mainland and globally.
Above is the indication of the revenues generated per part of the business. FinTech and business services, instead, refer to payment methods such as WeChat Pay and cloud services like Tencent Cloud. Analysts estimate that this segment will continue to remain a goldmine for Tencent for the foreseeable future. As already introduced in the last paragraph, the competitors of Tencent lay in different business sectors.
However, the main ones are Alibaba when it comes to cloud and payment services and Baidu for advertising.
The entertainment and gaming business is mostly put in jeopardy by two Chinese peers: ByteDance, the company behind the groundbreaking social network Tik Tok, and NetEase , a competitive and robust player representing one of the biggest videogame companies of Mainland China.
While revenues grew at a considerable pace, the most crucial difference between Q3 and Q3 is marginality and profits.
The company increased both Gross Profit margin and Operating margin to a more-than-healthy level. Excellent results also in the comprehensive income for the period.
Balance sheet figures saw a healthy expansion. While current liabilities figures remained almost the same, non-current liabilities went up by around ten billion dollars. Despite seeing an increase in capital expenditures, the company lowered its liabilities and became a net cash holder.
It also allowed Tencent to save on interests and other expenses related to debt. The discounted cash flow analysis is a suitable technique for interpreting a grown-up company like Tencent. This analysis relies heavily on the hypothesis that the analyst chooses to select. Then, we chose a We obtained this value by considering the cost of debt of 2. Moreover, the cost of equity was found by selecting a risk-free rate of 3.
At the moment, not a single company in the world has that kind of valuation. It is often not considered by investors that this company contains several others with a promising future. Some of those ventures, however, can be indeed categorized as Fast Growers.
China does not have precisely the best relations with all the countries worldwide. In particular, the relationship with the US has been complicated by the Trump mandate. The European Union is in the middle, mediating between the need for democracy worldwide and trade freedom. The error here could lay on the US imposing China tariffs and blocking the export of the oriental power, which is mostly directed to the States.
All this situation could impact Tencent, reducing its power to do business effectively outside China, and it could limit its advertising revenues in the event of a recession. There are three competitors to watch out for, as previously mentioned in the Qualitative Analysis. These are Alibaba for payment services , BiteDance for online advertising , and NetEase for video game development. The order, issued by the US Commerce Department, states that beginning on Sunday, WeChat will not only be unavailable to download and unable to process payments, but it will also be rendered unusable for US users — the order prohibits any internet hosting service from "enabling the functioning or optimization of the mobile application in the US.
Tencent has said it will continue to work with US officials to achieve a "long-term solution," and that the company "has always incorporated the highest standards of user privacy and data security. As WeChat's future hangs in the balance and Tencent works to continue operating in the US, here's a look back at how Tencent got its start in the late '90s and grew to become one of the most powerful companies in the world. While Ma oversees the company, Tencent's day-to-day operations are managed by its president, Martin Lau, according to Bloomberg.
Tencent launched WeChat in with the goal of allowing users to send messages over the internet, much like WhatsApp. Since then, Tencent has added features like video calling, gaming, shopping, the ability to send mobile payments, and the option to hail a taxi or order food.
The app is a major part of everyday life in China , to an extent that users outside the country can't fully comprehend. But WeChat has also become a surveillance tool, according to experts. Researchers at Citizen Lab recently found that WeChat has been monitoring sensitive keywords and images sent by users overseas and using the findings to help it train its censorship algorithms in China. The app also collects a substantial amount of information from its users, including their face and voice, leading some to worry that it could become an instrument for the Chinese government.
Tencent outright owns Riot Games, the Los Angeles-based studio responsible for two of the world's biggest games: "League of Legends" and "Teamfight Tactics. And for American companies looking to get their games in front of the Chinese market, Tencent also operates as a gatekeeper of sorts.
Same goes for EA, Sony, and Ubisoft. There's one major difference between Steam and WeGame: Tencent's version of Steam has far more users. All of that combined means Tencent is the most powerful gaming company in the world. Launched in , Tencent Pictures has been involved in high-profile Hollywood projects, including:. Founded in with its headquarters in Shenzhen, China, Tencent's guiding principle is to use technology for good.
Our communication and social services connect more than one billion people around the world, helping them to keep in touch with friends and family, access transportation, pay for daily necessities, and even be entertained. Tencent also publishes some of the world's most popular video games and other high-quality digital content, enriching interactive entertainment experiences for people around the globe.
Tencent also offers a range of services such as cloud computing, advertising, FinTech, and other enterprise services to support our clients' digital transformation and business growth. Tencent has been listed on the Stock Exchange of Hong Kong since User value is our guiding principle, we strive to incorporate social responsibility into our products and services; promote technology innovation and cultural vitality; help industries digitally upgrade; collaborate for the sustainable development of society.
Milestones Now Company Structure CDG Corporate Development Group As the platform for the company's new business incubation and new business exploration, CDG is responsible for promoting development and innovation for important areas such as financial technology and advertising, as well as marketing services, including payment and financial applications.
As a professional support platform, CDG also supports the company and various business groups in strategic planning, investments and mergers, investor relations and corporate global communications, marketing and public relations, and more.
While driving the digitalization of retail, medical, education, transportation and other industries, CSIG helps companies serve users in smarter ways, building a new ecosystem of intelligent industries that connect users and businesses. Through online gaming, live broadcasts, and offline eSports, IEG assists the company in leading the global interactive entertainment market to create better interactive entertainment content experiences for users.
PCG integrates social platforms such as QQ and QZone with traffic platforms such as Tencent's App Store and browsers, as well as content platforms including news, videos, sports, live broadcasts, animes and movies to develop a better growth environment for Tencent's content ecosystem.
PCG promotes the cross-platform and multi-modal development of IP, with the overall goal of creating more diversified premium digital content experiences for more users. Company Structure CDG.
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