China's game giant Tencent announced their third quarter results, and unlike Blizzard they don't seem to be losing customers. Tencent's total revenues for the quarter came to $1.2 billion, an increase of 11.2% over their second quarter revenues, and a whopping 43% increase over the 3Q 2010 revenues.
The breakdown of these numbers shows the majority of the revenue comes from Internet value-added services (which in Tencent's case, refers to things like selling virtual items to customers), which were $944.6 million, an increase of 11.4% over the second quarter and an increase of 45.4% over 3Q 2010.
Revenues from mobile and telecommunications value-added services were $133 million, while revenues from online advertising were $94.5 million (an increase of 57% over last year's 3Q).
Tencent's gross profit was $760.8 million, with an operating profit of $470.8 million. While their profit went up, the operating margin dropped slightly to 39.9% from 41.3% last quarter.
Tencent's scale is immense. They reported over 711 million active instant messaging user accounts, which is up almost 12% from last year.
The Internet value-added services (IVAS) includes the games Tencent has in China, but also the growth in League of Legends, the game produced by Riot Games which was purchased by Tencent earlier this year.
It's worth noting that Tencent is on track to record revenues for the fiscal year in the neighborhood of $4 billion, which will put it the vicinity of Activision's total revenue for the year, although with substantially better margins.
