WeChat and Mobile Games Drive Growth at Chinese Internet Giant Tencent
Posted in: UncategorizedTencent Holdings’ quarterly profit got a huge boost from the success of its megahit gaming title Honour of Kings and an assist from advertising revenues.
China’s largest corporation reported a 70% surge in net income to a record $2.7 billion for the three months ended June. Sales rose 59% to $8.5 billion.
Tencent’s market valuation is near record highs, fueled by expectations it will continue to tap the spending power of 200 million gamers on Honour of Kings and deliver more hits. The title’s popularity helped sales from smartphone play overtake desktops for the first time. The still-nascent advertising and finance business on instant messaging app WeChat has also boosted investors’ confidence it can compete with ad-leader Alibaba Group and sustain growth.
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