Tencent Announces 2010 First Quarter Results
, said, "During the first quarter of 2010, our various online platforms continued to grow and our IVAS business, particularly our online gaming business, benefited from the strong holiday season. The second quarter will be a weaker season for our IVAS business, but it will present stronger seasonality for our online advertising business. We are also looking forward to leveraging the Shanghai World Expo and World Cup events to further build our brand and media influence. While we are cognizant of the fact that as our scale grows, the growth rate of our business will inevitably slow down; we are committed to continuously investing into the future as we believe in the long-term potential of the China Internet market."

Financial Review for the First Quarter of 2010

IVAS revenues increased 19.0% QoQ to holidays and winter break for students, when users' propensity to spend increased. Our MVAS registered growth during the quarter, primarily driven by the increase in subscription to our bundled SMS packages as we enriched the privileges and features. For our online advertising business, revenues decreased on a quarter-on-quarter basis as the first quarter was traditionally a weak season. Looking into the second quarter of 2010, we expect weaker seasonality for our IVAS due to fewer school holidays during the quarter and school examinations towards the end of the quarter. Visibility of our MVAS business would remain low as the industry continues to face significant regulatory uncertainties. On the other hand, our online advertising business should benefit from stronger seasonality in the second quarter.