Tencent earnings top forecast as fintech and cloud revenue surges.
Byline: SIJIA JIANG
TENCENT posted a record quarterly profit yesterday, smashing market expectations, as the Chinese social media and gaming giant booked a rise in the value of its investments while fintech and cloud revenues helped make up for declines in its games arm.
Even so, revenue grew at its slowest-ever rate, as heightened regulatory scrutiny hobbled its gaming operations. That allowed earnings from its nascent fintech and business services to eclipse smartphone games for the first time.
In the three months ended March, Tencent saw 17 per cent growth in net profit to 27 billion yuan (PS3bn), beating the 19.4 billion yuan average of 13 analyst estimates compiled by Refinitiv.
Boosting profit was a 46 per cent rise in "net other gains," such as from investments, to 11.1 billion yuan. Revenue, however, came in just shy of analyst estimates at 85.5 billion yuan, with growth at an alltime low of 16 per cent.