Tencent Profit Jumps as High-Margin Business Grow
By Sherry Qin
Chinese technology giant Tencent reported a sharp rise in profit for the first quarter, buoyed by rapid growth in its high-margin businesses.
The Chinese videogame and social-media company said Tuesday that its net profit rose 62% to 41.89 billion yuan ($5.79 billion), higher than CNY35.61 billion expected in a FactSet poll of analysts.
The Shenzhen-based company's gross profit margin expanded to 53% from 45% a year earlier, supported by high-margin businesses, such as video accounts and search advertisements.
Revenue for the period rose 6% from a year earlier to CNY159.50 billion as solid ad revenue offset weakness in its gaming segment. Online ad revenue came in at CNY26.51 billion, up 26%.
Tencent's domestic game sales fell 2% on the year amid a lack of meaningful title releases during the period. That compared with a 3% decline in the fourth quarter.
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
May 14, 2024 05:07 ET (09:07 GMT)
Copyright (c) 2024 Dow Jones & Company, Inc.-
These Stocks Are (Still) Powering the Bull Market
-
5 Undervalued Energy Stocks to Play the AI Data Center Demand Boom
-
After Earnings, Is Lowe’s Stock a Buy, Sell, or Fairly Valued?
-
5 Stocks With the Largest Fair Value Estimate Cuts After Q1 Earnings
-
10 Stocks With the Largest Fair Value Estimate Increases After Q1 Earnings
-
Markets Brief: Inflation Back in the Spotlight
-
AI Is Booming, but Consumer Spending Is Slowing. Which Will Prevail in the Stock Market?
-
What’s Happening In the Markets This Week
-
3 Dividend Stocks for June 2024
-
After Earnings, Is Alibaba Stock a Buy, Sell, or Fairly Valued?
-
MongoDB Earnings: Slashing Valuation as Execution and Macro to Blame for Lower Guidance
-
Marvell Earnings: We Raise Our Medium-Term AI Forecast and Bring Our Valuation Up to $75
-
Zscaler Earnings: Impressive Traction in Emerging Products Drives Sales Growth for the Quarter
-
Dell Earnings: Raising Valuation on Strong AI, but the Stock Remains Severely Overvalued
-
After Earnings, Is Nvidia Stock a Buy, Sell, or Fairly Valued?
-
The 10 Best Companies to Invest in Now