Investor Alert

The Wall Street Journal Archives | Email alerts

Nov. 14, 2018, 10:16 p.m. EST

Tencent profits jump, despite China’s videogame crackdown

Ad sales, investment gains help beat analyst expectations

Watchlist Relevance

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Tencent Holdings Ltd. (700)

or Cancel Already have a watchlist? Log In

By Shan Li

Bloomberg News
The icons for Tencent Holdings Ltd. apps, clockwise from top left, WeChat, QQ, JOOX, Tencent News and Tencent Video.

BEIJING — Fueled by advertising sales and investment gains, Tencent Holdings Ltd.’s third-quarter profit jumped 30% despite a regulatory chokehold on videogames, the company’s biggest business.

Shenzhen-based Tencent /zigman2/quotes/204605823/delayed HK:700 -1.55%  , which also operates China’s dominant WeChat social network, on Wednesday posted net income of 23.3 billion yuan ($3.39 billion) for the three months ended Sept. 30, beating analyst expectations. Revenue rose 24% to 80.6 billion yuan, in line with forecasts.

Profit for the period included 8.8 billion yuan ($1.3 billion) from investments, turbocharged by the initial public offering of Meituan Dianping, the food and delivery company backed by Tencent. That is more than twice what Tencent booked in investment gains in last year’s third quarter.

The company didn’t mention the government’s freeze on videogame approvals in its prepared remarks. In their second-quarter earnings call in August, Tencent executives said the freeze contributed to a rare 2% drop in profit — heightening concerns about the company’s near-term prospects.

An expanded version of this report appears on WSJ.com.

Also popular on WSJ.com:

The best of the biggest U.S. airports.

Amazon’s move to Long Island City sparks condo frenzy.

HK : Hong Kong
$ 266.40
-4.20 -1.55%
Volume: 22.46M
Sept. 30, 2022 4:08p
P/E Ratio
Dividend Yield
Market Cap
$2574.15 billion
Rev. per Employee

This Story has 0 Comments
Be the first to comment
More News In

Story Conversation

Commenting FAQs »

Partner Center

Link to MarketWatch's Slice.