Tencent profit jumps 82%, beating estimates after strong video gaming, ad growth

Profit reached 47.6 billion yuan (US$6.6 billion) for the quarter ended June, up from 26.2 billion yuan in the same period a year ago. Total revenue for the Hong Kong-listed firm reached 161.1 billion yuan, up 8 per cent year on year from 149 billion. Analysts expected 40.3 billion yuan in profit and 161.3 billion yuan in revenue for the quarter, according to consensus estimates from Bloomberg.

“Our domestic games revenue resumed growth, and our international games revenue accelerated growth, due to increased user engagement at several of our evergreen titles, and the successful launches of certain new games,” Tencent founder and CEO Pony Ma Huateng said in a statement. “Looking forward, we continue to invest in our platforms and technologies including AI, enabling us to create new business value and better serve user needs.”

Tencent shares in Hong Kong fell 1.3 per cent on Wednesday ahead of the earnings announcement, closing at HK$373.8 (US$48). The company has been enjoying a rebound in its share price, which has risen by more than 26 per cent this year.

In a filing on Tuesday, Tencent Music attributed falling revenue largely to revenue declines in a business segment that includes live streaming, an area that has been facing increased regulatory scrutiny from Beijing and rising competition.

Tencent Music’s New York-listed shares fell 13 per cent on Tuesday after the earnings results. Shares were down 18 per cent in Hong Kong on Wednesday.