On Wednesday, Chinese media conglomerate Tencent reported outstanding profit in 3Q24, driven by growth in games, advertising, and cloud services.
Tencent 3Q profit has soared by 47% YoY to CNY 53.23 billion ($7.37 billion), largely beating LSEG estimate of CNY 46.18 billion. The company’s revenue has increased 8% annually to CNY 167.19 billion, just shy of analyst expected CNY 167.82 billion.
Video games remain as the cornerstone of Tencent, the division domestic market revenue shot up 14% YoY to CNY 37.3 billion, while the international scene saw profit stepped up by 11% to CNY 14.5 billion.
As its gaming segment continues to grow, Tencent remarked that both existing and new games have the potential to bring constant revenue to the company.
Revenue from marketing services (previously known as online advertising), has grown 17% annually to CNY 29.99 billion, putting it among the fastest growing sectors other than gaming. Tencent has credited the growth to strong advertiser demand for its short-form video, mini programs and search features within WeChat messaging app, or Weixin as it was known in China.
WeChat’s global monthly average user has grown by 3% from previous year to 1.38 billion in 3Q.
Tencent also claims benefits from the utilization of artificial intelligence, amidst the context of global AI rush.
