Tencent posts fastest profit growth in 3 years as online ads, business services offset slower gaming
Tencent has faced a number of headwinds in 2022 including a Covid-induced slowdown in the Chinese economy and a tougher market for gaming.
Bobby Yip | Reuters
Tencent beat analyst estimates for revenue and profit in the first quarter, thanks to slightly better sales in the Chinese tech giants core gaming business and improved profitability at its advertising and business services division.
Here’s how Tencent did in the March quarter versus LSEG consensus estimates:
- Revenue: 159.5 billion Chinese yuan ($22 billion) versus 158.4 billion yuan expected.
- Profit attributable to equity holders of the company: 41.9 billion yuan versus 36.64 billion yuan anticipated.
Tencent’s adjusted net profit was up 62% year-on-year, marking the fastest growth since the March quarter of 2021, according to LSEG data. Revenue jumped 6% year-on-year.
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