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

Tencent’s profit grew to US$6.6 billion in the second quarter, while revenue rose 8 per cent to US$22.5 billion

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Signage for Tencent Holdings outside the company’s headquarters in Shenzhen on April 17, 2024. Photo: Bloomberg

Iris Dengin ShenzhenandAnn Caoin Shanghai

Published: 4:51pm, 14 Aug 2024Updated: 9:30pm, 14 Aug 2024

Tencent Holdings saw profits jump 82 per cent in the second quarter, beating analyst estimates, on the back of new video gaming growth and improved advertising performance.

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 yuan. 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 co-founder, chairman 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.”

The Tencent Games booth seen at the annual China Digital Entertainment Expo and Conference, also known as ChinaJoy, in Shanghai on July 26, 2024. Photo: AFP

Video gaming sales, traditionally Tencent’s strongest revenue driver, grew 9 per cent in both domestic and international markets, reaching 34.6 billion yuan at home and 13.9 billion yuan overseas.