Tencent : Third-Quarter Net Profit Surged 89%

By Yifan Wang

Tencent Holdings Ltd. said its net profit for the third quarter surged 89%, thanks to continued strength in its gaming revenue and better cost efficiency.

Net profit rose to 38.54 billion yuan ($5.81 billion), beating a FactSet consensus estimate of CNY29.85 billion.

Revenue jumped 29% from a year earlier to CNY125.45 billion, also higher than the FactSet forecast of CNY124.03 billion. The rise was driven by a 45% revenue increase from online games, Tencent's largest source of income.

As China's economy normalizes, the tech giant points to the pandemic's lingering impact on its cloud business, which continues to be affected by delays in project deployment and new contract sign-ups. Advertising demand also remains weak from clients in industries such as transportation and tourism, it said.

Write to Yifan Wang at [e-mail]

(END) Dow Jones Newswires

11-12-20 0415ET