Tencent Finally Gives Its Battle-Weary Investors Some Relief
- The results included 8.8 billion yuan of one-time gains
- Gaming business has been unable to commercialize hit titles
Photographer: S3studio/Getty Images
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Tencent Holdings Ltd. surged almost 6 percent after a resurgent advertising business and whopping one-time gains boosted earnings and bought it time to find an answer for its plateauing core gaming business.
The WeChat-operator reported a 30 percent jump in quarterly profit -- well ahead of expectations for about 2 percent -- thanks in part to investments such as recent market debutante Meituan Dianping. That helped its stock rise the most in about two weeks. But revenue grew at its slowest pace in three years, as a Chinese clampdown on gaming licenses continued to hammer its bread-and-butter division.