Chinese social media and gaming giant Tencent posted a net profit of CNY33.11 billion in the second quarter, beating market expectations of CNY27.29 billion, the company's second-quarter earnings report released today showed.
Tencent's second-quarter revenue reached CNY114.883 billion, up 29 percent year-on-year and the highest growth rate in eight quarters.
Its second-quarter gross profit was RMB53.21 billion, up 36 percent year-on-year. Its second-quarter operating profit rose 43% year-on-year to CNY39.311 billion.
Tencent's second-quarter profit was 32.454 billion yuan, up 31 percent from a year earlier.
During the second quarter, Tencent's online game revenue rose 3% to CNY38.288 billion. This mainly reflected revenue growth from smartphone games including Game for Peace and Glory of Kings from the domestic market as well as revenue contributions from smartphone games from overseas markets, partially offset by lower PC client game revenue.
In the second quarter, Tencent's social networking revenue grew 6% to RMB26.714 billion. The increase was mainly driven by revenue contributions from digital content services.
Revenue from its financial technology and enterprise services business grew 13 percent to RMB29.862 billion in the second quarter. This was mainly due to the recovery of consumer sentiment in the Chinese mainland, which led to higher revenue from business payments, social payments and cloud services.
Revenue from the online advertising business increased by 5% to RMB18,552 million during the reporting period. Of which, revenue from social and other advertising increased by 5% to RMB15,262 million.
