Chinese technology powerhouse Tencent Holdings reported an 11% increase in fourth-quarter revenue on Wednesday, fueled by expansion in its gaming division. As the world's largest video game company and the force behind the WeChat messaging platform, Tencent recorded revenue of 172.4 billion yuan ($23.83 billion) for the quarter ending December 31.
The performance surpassed the 168.9 billion yuan average estimate of analysts surveyed by LSEG. Notably, the net profit stood at 51.3 billion yuan, outperforming analysts' anticipated 46.3 billion yuan, as per LSEG data.
Tencent's domestic gaming sector has displayed significant recovery since mid-2024, driven by the successful releases of titles like "Dungeon & Fighter Mobile" and "Delta Force". The company has also reaped the benefits of relaxed regulations in China's gaming industry following previous stringent restrictions.
In the mentioned period, domestic gaming revenue surged by 23% to 33.2 billion yuan, while international gaming revenue increased by 15% to 16 billion yuan. Moreover, revenue from the Marketing Services division, encompassing online advertising, saw a 17% growth to 35 billion yuan.
The FinTech and Business Services unit, covering payment services, wealth management products, and cloud computing solutions, posted revenue of 56.1 billion yuan, marking a 3% year-on-year growth. ($1 = 7.2357 Chinese yuan)