Tencent earnings beat estimates

Shanghai: Chinese internet giant Tencent said on Wednesday its net
profit jumped 35 percent in the second quarter, as the company
continued to wriggle out of Beijing´s crackdown on online gaming
and build mobile game growth.Shenzhen-based Tencent said net profit
was 24.1 billion yuan ($3.5 billion) in the three months ending
June 30, beating an average estimate from Bloomberg analysts of
21.1 billion yuan.Total revenues were up 21 percent at 88.8 billion
yuan, primarily driven by mobile game growth, commercial payment
services, and digital content businesses.Tencent´s smartphone
games revenues climbed 26 percent in the three months. But Tencent
was hammered by a Chinese government crackdown on gaming which
launched last year and led to a months-long license approval
freeze.The tech giant maintained revenue growth from the likes of
popular game “Honour of Kings”, and began charging users for newer
title “Peacekeeper Elite” — a toned-downed version of its
now-dropped hit game “PlayerUnknown´s Battlegrounds” — clocking
up more than 50 million daily active users since its launch in
May.Tencent said it has dropped the original title entirely and the
new version, which won government approval, was developed in
conjunction with China´s air force.Although it was showing signs
of recovery, the gamaing crackdown shaved around $250 billion off
Tencent´s stock market value by the end of last year and battered
profits towards the end of 2018.”We expect gaming revenue to
re-accelerate starting from the second quarter onward,” David Dai,
a Hong Kong-based analyst at Bernstein told Bloomberg News. Shares
in the Hong Kong-listed company rose 1.80 percent Wednesday ahead
of the update.
Source: FS – All-News2-Economy
Tencent earnings beat estimates