Tencent has exceeded second-quarter expectations with both its revenue and profit numbers. The company reported a revenue of 161.12 billion Chinese yuan, surpassing the estimated 160.77 billion yuan. Additionally, profit attributable to equity holders of the company stood at 47.63 billion Chinese yuan, compared to the expected 39.95 billion yuan. This showcases a significant 8% year-on-year growth in revenue and an impressive 82% rise in profit.
After experiencing a decline in annual revenue in 2022, Tencent shifted its focus towards reinvigorating growth in its core gaming division. The company’s China games business recorded a revenue of 34.6 billion yuan in the second quarter, marking a substantial 9% year-on-year increase. Tencent attributed this growth to the success of popular games like Valorant and the recent launch of DnF Mobile.
In addition to its domestic gaming success, Tencent’s international games revenue also saw a commendable 9% rise to 13.9 billion yuan. The company’s online advertising business brought in 29.9 billion yuan in revenue, up 19% year-on-year. This growth was primarily driven by increased revenue from video advertising on WeChat, China’s leading messaging app owned by Tencent.
Tencent’s fintech and business services division, encompassing cloud computing and WeChat Pay, reported a 4% year-on-year revenue increase to 50.4 billion yuan. However, the growth rate was dampened by a slowdown in commercial payment revenue due to reduced consumer spending.
Overall, Tencent’s diverse portfolio of businesses, including gaming, online advertising, and fintech services, has contributed to its robust performance in the second quarter. Investors have shown confidence in the company, evident from the 27% increase in its share value this year. With promising ventures like DnF Mobile and strategic advancements in video monetization on WeChat, Tencent appears poised for sustained growth in the foreseeable future.
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