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Published on 12/08/2020 12:15:53 PM | Source: Reuters

Tencent profit beats as games outperform

Posted in Top Stories| #China #World Market

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SHANGHAI -

Chinese gaming and social media giant Tencent Holdings Ltd said second-quarter net profit rose 37%, beating market estimates, on higher demand for its video games as coronavirus-related lockdowns kept people indoors.

The world's largest gaming firm by revenue booked a 33.1 billion yuan ($4.76 billion) profit for the three months through June. That was ahead of an analyst average estimate of 27.56 billion yuan, according to data from Refinitiv.

Revenue rose 29% to 114.88 billion yuan, versus market expectations of 112.76 billion yuan.

The results come a few days after the United States said it would ban WeChat-related transactions in the country. [

Tencent, which owns the Chinese messaging app WeChat, is under pressure to address concerns about the impact of the ban and outline its plans to mitigate any fallout.

The company has also postponed a blockbuster release of "Dungeon and Fighter Mobile" game https://www.reuters.com/article/us-tencent-china-game/tencents-dungeon-and-fighter-mobile-says-release-will-be-delayed-idUSKCN257019, planned for Aug. 12, citing upgrades needed to the game's addiction prevention system.

 

($1 = 6.9474 Chinese yuan renminbi)

 

(Reporting by Pei Li, editing by Louise Heavens)