Tencent net up 47.2% on diversification

Tencent Holdings<700>, China's largest instant messaging provider, reported on Wednesday that its net profit increased 47.2% to RMB 1.566 billion in 2007 from RMB 1.064 billion the year earlier, fueled by the diversified business portfolio.

Its basic earnings per share (EPS) were RMB 0.88, and the board of directors has proposed a final dividend of HK$0.16 per share, which is still subject to the approval of the shareholders at the Annual General Meeting scheduled for May 14, 2008. Revenue leapt 36.4% from a year ago to RMB 3.82 billion.

For the fourth quarter of 2007, Tencent experienced negative seasonality in its non-game Internet value-added services business, but saw growth in its online gaming and advertising businesses and wireless value-added services.

On this basis, the company said operating expenses would account for 10% of its turnover this year.

Its H-shares closed at HK$41.15 yesterday, up 6.06%.