Chinese tech giant Tencent has just reported a sharp rise in fintech-related revenues following the release of the first financial report which sets out a separate category for the business area.
Hong Kong-listed Tencent’s first quarter financial report released on 15 May indicates that “fintech and business services revenue” was 21.789 billion yuan for the first three months of 2019, accounting for 25% of all operating revenues.
The first quarter revenues generated by fintech and other corporate services came in ahead of online advertising, which accounted for 16% of Tencent’s operating revenues at 13.377 billion yuan.
Value-added services accounted for a 57% share at 48.974 billion yuan.
Tencent’s fintech operations received a boost from commercial payments, other fintech services such as micro-loans, as well as cloud operations.
CEO Pony May said that while fintech services and cloud operations remain at an early stage of development they were already generating significant revenues, prompting the creation of a separate category for them in the financial support in order to highlight their long-term growth potential.