BEIJING (Reuters) – China’s Tencent Holdings reported an 8 percent rise in second-quarter revenue on Wednesday, as its gaming business rebounded after a new mobile game launched in May got off to a strong start.
The world’s largest video game company and operator of the WeChat messaging platform reported revenue of 161.12 billion yuan ($22.5 billion) in the quarter ended June 30. Analysts had expected revenue of 160.77 billion yuan, according to data from LSEG.
Tencent’s core gaming business has faced headwinds, with revenue in China falling for the second consecutive quarter since the fourth quarter of last year, partly due to successful launches of competing games by rivals.
There are now signs of recovery, thanks in part to the release of the highly anticipated title “Dungeon & Fighter Mobile,” which topped the charts of top-grossing games on Apple’s iOS platform in China for nearly a month after its release in May, industry data shows.
In the April-June quarter, Tencent’s domestic gaming revenue rose 9% to 34.6 billion yuan, while international gaming revenue also rose 9% to 13.9 billion yuan.
The company said it spent HK$52.3 billion ($6.71 billion) on share buybacks in the first half of 2024, excluding costs.
Earlier this year, Tencent pledged to more than double its share buybacks by 2024, from HK$49 billion in 2023 to over HK$100 billion.
Chinese tech companies have stepped up share buybacks to boost investor confidence as the sector recovers from tighter regulation. The trend comes amid concerns about China’s slowing economic growth.
($1 = 7.1484 Chinese Yuan Renminbi)
($1 = 7.7897 Hong Kong dollars)
(Reporting by Liam Mo and Casey Hall; Editing by Jason Neely and Shounak Dasgupta)
