Chinese tech giant Tencent’s quarterly profit jumps 82% as key gaming unit accelerates

Tencent beat second-quarter top and bottom line estimates as growth in its key gaming division accelerated.

Here’s how Tencent did in the June quarter against LSEG consensus estimates:

• Revenue: 161.12 billion Chinese yuan ($22.5 billion) versus 160.77 billion yuan expected.
• Profit attributable to equity holders of the company: 47.63 billion Chinese yuan versus 39.95 billion yuan expected.

After suffering its first ever annual revenue decline in 2022, Tencent has been looking to reaccelerate growth in its core gaming business.

Investors have rewarded the company so far, with shares up around 28% this year as of Tuesday. That’s in part thanks to the excitement around a new game called Dungeon & Fighter Mobile (DnF Mobile) which is produced by South Korean firm Nexon and distributed in China by Tencent.

DnF Mobile has been dominating the top grossing game charts in China, and investors are hoping Tencent could reap the benefits of its popularity for years to come, as it did with Honor of Kings.