Tencent profit climbs 89% in third quarter



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Tencent Holdings Ltd. said its third-quarter net profit jumped 89%, thanks to continued strength in gaming revenues and better profitability.

Net profit rose to 38.54 billion yuan ($ 5.81 billion), beating the FactSet consensus estimate of CNY 29.85 billion.

Revenue jumped 29% from the previous year to CNY 125.45 billion, also higher than the FactSet forecast of CNY 124.03 billion. The increase was driven by a 45% revenue increase from online games, Tencent’s largest source of revenue.

As the Chinese economy normalizes, the tech giant underlines the continuing impact of the pandemic on its cloud business, which continues to be affected by delays in project deployment and signing of new contracts. Demand for advertising also remains low from customers in industries such as transportation and tourism, he said.

Write to Yifan Wang at [email protected]

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