By Yifan Wang

Tencent Holdings Ltd. said its first-quarter profit rose 65%, thanks to stable growth in gaming income and a surge in financial-technology revenue.

The world's largest video-game developer on Thursday reported net profit of 47.77 billion yuan ($7.42 billion).

Revenue increased 25% from a year earlier to CNY135.30 billion, the company said, driven by a sharp increase from its fintech and business-services business.

Both results beat analyst estimates, according to FactSet, marking the Chinese internet giant's fifth consecutive quarter of better-than-expected performance.

Tencent, like many other technology giants including Alibaba Group Holding Ltd. and Facebook Inc., enjoyed a strong year in 2020, when homebound consumers turned to online products and services during the coronavirus pandemic.

But investor concerns have been growing in recent months, as lockdown-triggered demand eased in China and Beijing expanded a crackdown to rein in the country's rapidly growing internet industry.

Write to Yifan Wang at yifan.wang@wsj.com

(END) Dow Jones Newswires

05-20-21 0515ET