Chinese technology company Tencent is a gaming giant and the parent company of China’s ubiquitous social messaging app WeChat.
Cheng Xin | Getty Images News | Getty Images
Chinese social media and gaming companies Tencent Third-quarter profit reported on Wednesday was better than expected, driven by growth in gaming, advertising and cloud services.
Tencent reported that third-quarter profit attributable to shareholders surged 47% year-on-year to 53.23 billion yuan ($7.37 billion), while the London Stock Exchange expected net profit for the period to be 46.18 billion yuan.
The company’s revenue rose 8% year-on-year to 167.19 billion yuan, below analysts’ forecast of 167.82 billion yuan.
Gaming remains the company’s backbone, with the unit’s domestic revenue rising 14% year-on-year to 37.3 billion yuan in constant currency terms, while international gaming revenue surged 11% to 14.5 billion yuan.
The company noted that both existing and new games have “evergreen potential.”
Marketing services revenue (formerly known as online advertising) increased by 17% year-on-year to 29.99 billion yuan, becoming one of the fastest growing categories outside of games. Tencent attributed the growth to “strong advertiser demand” in its short videos, mini programs and messaging app, known as WeChat in China and WeChat overseas.
In the third quarter, the global average monthly users of this messaging app increased by 3% year-on-year to 1.38 billion.
In the context of the booming global artificial intelligence field, the company also boasted the benefits of adopting artificial intelligence:
Tencent said in a statement: “We are increasingly seeing the practical benefits of deploying artificial intelligence in our products and operations, including marketing services and the cloud, and will continue to invest in artificial intelligence technology, tools and solutions to provide Users and partners provide assistance. earnings release.
This breaking news story is being updated.
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