China's Tencent Holdings Limited announced the unaudited consolidated results for the first quarter of 2009 ended March 31, 2009, and stated total revenues were CNY2.50 billion, an increase of 19.4% over the fourth quarter of 2008 and an increase of 74.8% over the first quarter of 2008.
Internet value-added services revenues increased 28.8% quarter-on-quarter to CNY1.90 billion and represented 76.0% of the total revenues in the first quarter of 2009. Mobile value-added services revenues increased 9.9% quarter-on-quarter to CNY439.5 million and represented 17.6% of the total revenues. However, online advertising revenues decreased 30.1% quarter-on-quarter to CNY146.6 million and represented 5.9% of total revenues in the first quarter of 2009. The decline reflected lower advertising spending by customers as they imposed more cautious cost control measures, which include delaying the budget approval process and signing of framework contracts, under the uncertain economic environment.
Tencent's gross profit was CNY1.719 billion, an increase of 21.5% quarter-on-quarter and an increase of 64.5% year-on-year. Gross margin increased to 68.6% from 67.4% last quarter. Profit for the period was CNY1.053 billion, an increase of 20.3% quarter-on-quarter or an increase of 94.4% year-on-year. Net margin increased to 42.1% from 41.8% last quarter.
Looking ahead, Tencent states the second quarter of 2009 will present a weaker seasonality for the company's IVAS business. As of the end of March 31, 2009, Tencent's cash position stood at CNY6.60 billion.