Tencent slides on Q4 earnings miss; WeChat user base at 355M

|About: Tencent Holding Ltd. ADR (TCEHY)|By:, SA News Editor

A 39% Y/Y jump in sales/marketing spend led Tencent's (TCEHY) Q4 net income to come in at RMB3.91B ($631M), below a consensus of RMB4.1B. While net income rose 13% Y/Y, revenue rose 40% to RMB17B ($2.74B). (PR -. pdf)

Value-added services revenue (inc. gaming and subscriptions), pressured some by the mobile shift, rose 21% Y/Y to RMB11.9B, and made up 70% of revenue. Online ad sales rose 58% to RMB1.5B, and e-commerce transaction revenue nearly doubled to RMB3.3B.

Monthly active users for Tencent's WeChat mobile messaging platform (dominant in China) totaled 355M, +6% Q/Q and +121% Y/Y after accounting for a methodology change. That makes WeChat's MAU base nearly 3x that of Sina's Weibo, and 24% smaller than WhatsApp's 465M (as of February).

Not surprisingly, Tencent's PC platforms (huge Chinese penetration rates) are seeing little user growth. MAUs for Tencent's Qzone social networking platform rose 4% Y/Y to 625M, and instant messaging MAUs rose 1% to 808M.

Shares fell 4.4% in OTC trading today. Tencent's report arrived after overnight trading in Hong Kong ended.