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Tencent posts impressive first quarter profit growth

Tencent Holdings smashed first-quarter expectations with a 61% profit increase driven by its mobile gaming and advertising services, the South China Morning Post reports this morning.

The company, owner of China’s largest social media platform WeChat, posted net income of RMB 23.29 billion ($3.65 billion) up to March 31st – a 30% mark-up on market estimates. Revenue grew by 48% from the same period last year on the back of strong performance in its online advertising, gaming and messaging services.

Tencent’s mobile game branch, which launched a number of new blockbuster games this year, saw a 68% rise in revenue from last year’s first quarter.

The figures also revealed Tencent’s expansionary activity, with the company holding net debt of RMB 14.5 billion as of March 31st due to investments and acquisitions in sectors such as e-commerce and automobiles.

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