Tencent Holdings, China’s largest internet company, reported a significant surge in profits. The company’s strong performance was driven by growth in its online gaming and advertising businesses. This increase highlights Tencent’s continued dominance in the Chinese internet market.
Tencent Holdings, China’s biggest internet firm, announced a sharp rise in profits, boosted by its online gaming and advertising operations.
The company’s second-quarter net profit jumped to 2.65 billion yuan ($388 million), compared with 1.64 billion yuan a year earlier. Revenue rose 64% to 7.88 billion yuan.
Tencent, known for its QQ instant messaging service, has successfully diversified into online games and other internet services.
“Our strategy of providing a comprehensive online experience to our users continues to deliver strong results,” said Chairman and CEO Ma Huateng in a statement.
The company’s online gaming revenue increased by 76% year-on-year, driven by popular titles such as “Cross Fire” and “QQ Dazzle”. Advertising revenue also saw strong growth, rising by 58%.
Tencent is facing increasing competition from other Chinese internet companies, such as Baidu and Alibaba. However, the company’s strong financial performance suggests that it is well-positioned to maintain its leading position in the market.
Analysts expect Tencent to continue to grow its revenue and profits in the coming years, driven by the increasing popularity of online gaming and other internet services in China.