QQ announces 2007 earnings | Facebook should look carefully
+8* China QQPublished March 21, 2008 at 2:04 pm 16 CommentsThanks to TechCrunch for its link!
Tencent Holdings just announced their numbers for 2007. As the estimate we used in our last presentation at Media’08 in Sydney was fairly conservative, we felt we had to comment on those and update a bit.
Comparison of leading SNS (2.3MB) :: Inside QQ sample (1.9MB) :: on Slideshare ::
QQ’s 2007 figures
- Active accounts: 300 million
- This is 50% more than the number of Internet users in China (many have multiple accounts)
- This is about the size of the US population
- Revenues: 523 million USD
- This is close to 4x Facebook, at 150 million USD
- This is real money from IM/SNS. Something even serious companies like The Economist who just wrote an article titled “Everywhere and nowhere” seem to not believe is possible. We hope they will look outside of Silicon Valley next time.
- Operating profit: 224 million USD
- Facebook recorded a 50 million loss last year. How sad.
Though this should already be enough to raise a bit of interest, the most interesting is the split of revenues:
- Internet services (digital goods, games…): 344 million USD (66%)
- Mobile services: 110 million USD (21%)
- Online ads: 67 million USD (13%)
Yes, ladies and gentlemen: QQ gets only 13% of its revenues from online ads! (vs. close to 100% for MySpace, Facebook and the like). All the rest is Internet and mobile digital goods (we stopped calling them “virtual goods” as they are as real as the money in your bank account: digital).
Some interesting conclusions on those figures
- QQ is big and still growing. Notably, the ad market is largely untapped – mostly due to the misunderstanding of IM and SNS by ad agencies and brands. Lots of work to convince those folks that a service that attracts so many millions is – maybe – a media in its own right! QQ has been beefing up its ad team and is preparing a roadshow for its new MIND platform – maybe some good news in a quarter or two?
- Facebook / MySpace and others also have a largely untapped market: digital goods. We estimate that with the US strong GDP/capita, Facebook could generate 5 times more revenues per user than QQ, which has 5 times more users. So about 300~400 million USD per year. And this only on Internet.
- On mobile, QQ is underdelivering due to terrible market conditions in China – with tough policies from operators. Facebook could generate easily 100 MUSD with mobile thanks to various personalization services (please, do not mention messaging, this is so 2003… right, 2003 in Europe, not in US).
A whole lot of consulting and research companies are publishing about social networks on both Internet and mobile, but close to none is reporting about China, Korea or Japan. If you have interest in knowing more about the world’s leading markets, feel free to contact us at info {at} plus8tar.com.
[...] +8* | Plus Eight Star | Mobile and Internet business consulting in Asia, mobile consulting in China, mobile consulting in Japan, mobile consulting in Korea, Internet consulting in China, mobile consulting beijing, mobile consulting tokyo, mobile consultin – 224 millions de $ de bénéfices pour QQ en 2007 [...]
[...] Mohamed wrote an interesting post today onHere’s a quick excerptA whole lot of consulting and research companies are publishing about social networks on both Internet and mobile, but close to none is reporting about China, Korea or Japan. If you have interest in knowing more about the world’s … [...]
[...] 珊瑚虫作者，北京理工大学的陈福寿刚刚获得了三年的有期徒刑，就有无数的支持者要联合起来"杯葛（B0yc0tt）"腾讯。请原谅我用了"杯葛"这个词，因为我认为，它在某些时候显得不可取代。看看这篇报道（http://www.awflasher.com/blog/archives/1229），你就会明白腾讯有多么强大了。我想，百度的IM向腾讯挑战没什么胜算。来自腾讯2007的Q4报告与年报（英文版，PDF）为我们展示了这样一个无敌的"赚钱机器"有多么强大。而一位专注于亚洲国家互联网行业研究的CEO：Benjamin Joffe，对此做出了如下的总结（原文为英文，我这里翻译、整理了一下）：活跃用户：3亿 这是一半以上的中国网民 这是美国的人口总合 收入：5.23亿美元 这是Facebook的四倍（Facebook为1.5亿美元） – 这是中国人民的力量（不许联想！） 这是从IM和虚拟社区、虚拟装备中获得的直接收入。（美国的女孩是不会花钱买一件只能挂在屏幕上的"性感睡衣"的，所以Benjamin建议《经济学家》等媒体能从硅谷爬出来看看太平洋的这一边） 营业利润：2.24亿美元 Facebook去年亏损了5000万美元 收入来源 互联网服务（虚拟商品、网络游戏）：3.44亿美元，66% 移动业务：1.10亿美元，21% 在线广告：6700万美元，13% 女士们，先生们：QQ的在线广告之赚到13%的利润，而MySpace的收入几乎全部来自于广告！可怜的MySpace……我不忍心称互联网服务为"虚拟商品"，因为它们已经是货真价实的真金白银了。 归纳起来很简单：中国人会花掉半个月的工资买一件QQ秀的衣服，也不会去花钱享受Flickr的服务。我不想讨论这些服务彼此谁更有价值，只怕因此而帮了倒忙。 中国人喜欢在一棵树上吊死。在中国，喝脑白金的人往往会喝一辈子脑白金。（当然，QQ比脑白金那是天壤之别，我只是打个比方） 当然，我也非常不喜欢那些动辄问候马化腾家人的人，毕竟这样显得很没素质。无论如何，这就是中国互联网的现状。不过Benjamin甚至还建议Facebook和MySpace学习QQ出售虚拟商品。当我看到"Facebook / MySpace and others also have a largely untapped market: digital goods."这句话的时候，我真的怀疑这哥们在亚洲呆太久了。JOKE：当然，我个人是非常希望腾讯这架赚钱机器能跨越太平洋登陆美利坚，去美国人民那里赚点银子回来报效祖国。(more…) – aw提醒您：博客可能危害健康—相关文章 :微软收购腾讯？QQ、MSN停止使用？腾讯叨客上线了两件事情，一好一坏反过来 : BlogKit + QQ’s "Active"看我是如何搞死我的QQ宠物的（转载|附图）[三个太阳被我捉到] QQ等级情报 搜集|整理QQ玩家马化腾：一个空手道高手 [...]
[...] 来自腾讯2007的Q4报告与年报（英文版，PDF）为我们展示了这样一个无敌的"赚钱机器"有多么强大。而一位专注于亚洲国家互联网行业研究的CEO：Benjamin Joffe，对此做出了如下的总结（原文为英文，我这里翻译、整理了一下）： [...]
[...] 来自腾讯2007的Q4报告与年报（英文版，PDF）为我们展示了这样一个无敌的”赚钱机器”有多么强大。而一位专注于亚洲国家互联网行业研究的CEO：Benjamin Joffe，对此做出了如下的总结（原文为英文，我这里翻译、整理了一下）： [...]
[...] It has been reported that Chinese social network QQ made $523 million in revenues last year, which actually is almost four times more than Facebook. Facebook only turned over a revenue of $150 million, and while they reported a $50 million loss in 2007, QQ reported a profit of $224 million. [...]
[...] Für die CeBIT hatte ich ja einen kleinen Vortrag zu diesem Thema vorbereitet, vielleicht werd ich in den nächsten Wochen da das ein oder andere daraus hier reinstellen. Interessanter Case ist das chinesische Social Network QQ.com, das in 2007 offenbar mehr als viermal so viel Umsatz wie facebook gemacht hat. Das erstaunliche daran ist, dass die Seite nur den kleinsten Teil – etwa 13% – des Umsatzes durch Werbung gemacht hat. Der größte Teil sind “virtual goods”, also ganz ähnlich wie das Koreanische Netzwerk Cyworld, das sehr erfolgreich Bilder, virtuelle Möbel und sonstigen digitalen krimskrams für die virtuellen Zimmer seiner Nutzer verkauft.Die Frage ist: Kann man auch Europäern und Amerikanern sowas verkaufen? Oder is das ein Spleen, der bevorzugt in asiatischen Kulturen anzutreffen ist Sehr gespannt ob facebook, myspace und die anderen sich in diese Richtung etwas einfallen lassen… [...]
[...] The IM penetration rate is China is much higher than email (81% vs. 57%), and Tencent has built a cash machine around its popular IM client QQ. So it is totally not surprised that Baidu will roll out its own IM tool, and it has been rumored in the market for about a year. The rumor has been confirmed by Baidu when it start to recruit IM client software developers in last month. Now the IM from Baidu, which is called Baidu Hi, is out for public beta. [...]
[...] 来自腾讯2007的Q4报告与年报（英文版，PDF）为我们展示了这样一个无敌的”赚钱机器”有多么强大。而一位专注于亚洲国家互联网行业研究的CEO：Benjamin Joffe，对此做出了如下的总结（原文为英文，我这里翻译、整理了一下）： [...]
[...] Danwei (Chinese media, advertising, and urban life) DLA Piper (International law firm) JL Mc Gregor and Company (research and consulting services focused on China) Ogilvy China (communication experts) +8* (Mobile and Internet business consulting) Spill Group Asia (casual gaming websites) Springtime (PR and communications company) Thomas Crampton (blogger: ‘Internet, media, and new ideas seen from Asia’) [...]
[...] I just returned from a trip to Shanghai, and in case you didn’t know anyway, here’s my number one insight: China scales. Let’s take QQ.com as an example, the leading Chinese online social network. The site is reported to have over 300 million active accounts. That is eight times the member base of Facebook — and it’s the same size as the US population. [...]
[...] Danwei (Chinese media, advertising, and urban life) DLA Piper (International law firm) JL Mc Gregor and Company (research and consulting services focused on China) Ogilvy China (communication experts) +8* (Mobile and Internet business consulting) Spill Group Asia (casual gaming websites) Springtime (PR and communications company) Thomas Crampton (blogger: ‘Internet, media, and new ideas seen from Asia’) [...]
[...] Facebook: 70 000 000 aktiva användareQQ.com: 300 000 000 aktiva användareQQ.com är Kinas största community. Sajten är på kinesiska och i stort sett oanvänd utanför Asien. Benjamin på plus8star.com har skrivit en mycket intressant blogpost om QQ och deras framgångsfaktorer. Deras huvudsakliga intäkter består av försäljning av minispel, digitala verktyg och andra “digital goods”.Här är ett utkast från blogposten:QQ’s 2007 figures* Active accounts: 300 milliono This is 50% more than the number of Internet users in China (many have multiple accounts)o This is about the size of the US population* Revenues: 523 million USDo This is close to 4x Facebook, at 150 million USDo This is real money from IM/SNS. Something even serious companies like The Economist who just wrote an article titled “Everywhere and nowhere” seem to not believe is possible. We hope they will look outside of Silicon Valley next time.* Operating profit: 224 million USDo Facebook recorded a 50 million loss last year. How sad.Though this should already be enough to raise a bit of interest, the most interesting is the split of revenues:* Internet services (digital goods, games…): 344 million USD (66%)* Mobile services: 110 million USD (21%)* Online ads: 67 million USD (13%) [...]
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[...] Recent public urls tagged “300million” → QQ announces 2007 earnings | Facebook should look carefully [...]
[...] This is a pretty strong statement – upon which (according to VentureBeat’s report) there was no comment and no follow-up question! QQ making over 500 million USD last year, most of which from digital goods (close to 350 million USD) should be a pretty good validator for this model but hey – it’s Asian, not American, and certainly sounds irrelevant until you actually try it or show it to a US teenager. Unfortunately, most business people don’t bring teens with them on business trips to Asia. [...]