On Wednesday, Tencent, a Chinese social media and gaming business, revealed a third-quarter profit that was higher than anticipated due to growth in games, advertising, and cloud services.
An LSEG estimate of 46.18 billion yuan for the third quarter was lower than Tencent’s declared profit attributable to shareholders, which increased by 47% year over year to 53.23 billion yuan ($7.37 billion).
Although the company’s revenue increased by 8% annually to 167.19 billion yuan, it fell short of the analyst’s predicted 167.82 billion yuan.
With domestic sales for the gaming division climbing 14% year over year to 37.3 billion yuan, and revenue for foreign games rising 11% to 14.5 billion yuan on a constant currency basis, gaming continued to be the company’s mainstay.
Both new and current games have “evergreen potential,” Revenue from marketing services, formerly known as online advertising, increased by 17% annually to 29.99 billion yuan, making it one of the sectors with the highest growth outside of gaming.
Tencent credited the expansion to “strong advertiser demand” for its mini-programs, short films, and search capabilities on its messaging app, Weixin in China and WeChat in other countries.
Source (CNBC)
