New videogames powered better-than-expected profits for China’s Tencent Holdings Ltd. in the second quarter, reported the Wall Street Journal.
Tencent, owner of the social networking app WeChat, said that its profit for the period rose to RMB 24.1 billion ($3.4 billion) from RMB 17.9 billion a year earlier. Analysts polled by FactSet were expecting a second-quarter profit of RMB 22.2 billion. Revenue rose 21% from a year earlier to RMB 88.8 billion, short of the RMB 93 billion analysts had estimated.
Industry watchers said China’s slowing economy and competition from rivals such as Bytedance Inc., which is behind wildly popular short-video apps TikTok and Douyin, have begun dimming the appeal of advertising on WeChat, the country’s dominant social network with over one billion users.