China’s Tencent quarterly profit jumps 89%, beats forecast – Latest News


Chinese gaming and social media giant Tencent Holdings Ltd reported a forecast-beating 89% rise in quarterly profit, boosted by video games and advertising businesses.

The world’s largest gaming firm by revenue booked a 38.5billion yuan ($5.8 billion) profit for the three months through September. That was ahead of an analyst average estimate of 30.81 billion yuan, according to data from Refinitiv.

Revenue rose 29% to 125.4 billion yuan.

The Chinese giant has benefitted from healthy growth of paying users for video games in China and international markets. Its flagship game Honor of Kings reported a record 100 million daily active users in the first 10 months of 2020.

Tencent said that, following the COVID-19 outbreak, overall China advertising activity appeared to have largely returned to normal, with rapid growth in sectors such as education, Internet services and ecommerce platforms.

But Tencent said revenues from its cloud and other business services, a potential future growth engine, were affected by the lingering impact of the pandemic, such as delays in project deployment and new contract sign-ups.

“The year-on-year revenue growth rate was therefore lower than previous quarters, which we expect to be temporary in nature,” Tencent said.





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