Tencent's Profit Rises 82% in Gaming Growth
- Chinese tech giant Tencent's quarterly profit rose by 82%.
- The growth was primarily fueled by the acceleration in its key gaming division.
- Tencent beats second-quarter financial estimates.
Tencent Holdings Ltd. has exceeded expectations in its second-quarter earnings, showcasing a significant rebound in its gaming division. The company reported a revenue of 161.12 billion Chinese yuan ($22.5 billion), slightly surpassing the anticipated 160.77 billion yuan. Profit attributable to equity holders soared to 47.63 billion yuan, well above the expected 39.95 billion yuan. This marks an 8% year-on-year revenue increase and an impressive 82% rise in profit, signaling a robust recovery following its first-ever annual revenue decline in 2022. The surge in Tencent's performance is largely attributed to the success of its gaming portfolio, particularly the newly launched Dungeon & Fighter Mobile (DnF Mobile), developed by South Korean firm Nexon. The game has quickly ascended to the top of China's grossing charts, generating optimism among investors who have seen Tencent's shares rise approximately 28% this year. The company is hopeful that DnF Mobile will replicate the long-term success of its previous hit, Honor of Kings. In the second quarter, Tencent's China games business generated 34.6 billion yuan, reflecting a 9% year-on-year growth, which outpaced the 3% growth recorded in the first quarter. The company credited this performance to increased sales from popular titles like Valorant and the successful launch of DnF Mobile, which has re-engaged millions of fans and is expected to maintain player retention. Additionally, Tencent's international games revenue also saw a 9% increase year-on-year, reaching 13.9 billion yuan, further solidifying the company's position in the global gaming market.