Shanghai: Chinese Internet giant Tencent said it posted a nearly 30 per cent rise in profit in the most recent quarter as new games already in the pipeline mitigated any impact from a government crackdown on the game sector.
Shenzhen-based Tencent said net profit came in at 23.33 billion yuan ($3.39 billion) in the three months ending on September 30, beating a Bloomberg analyst estimate of 18.39 billion yuan.
Tencent’s earnings have drawn close scrutiny after the company posted a two per cent year-on-year fall in profit for the preceding quarter, which Bloomberg data indicated was the first such decline in at least a decade.
Known for its ubiquitous WeChat social media and messaging programme, Tencent relies heavily on revenues generated by video games played by its users, and the company outlook has been clouded by a government freeze on approvals for new game titles since earlier this year.
The government also has initiated a campaign to tighten regulation of the fast-growing industry amid concerns over gaming addiction.
The recent negative news has lopped a stunning amount off of Tencent’s total market value — more than $250 billion —- this year as its Hong Kong-listed shares plummeted. — AFP
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