Tencent Reports Profit Drop Despite Strength in Games, Advertising, Fintech

By Kosaku Narioka

Tencent Holdings reported a drop in third-quarter net profit due partly to the absence of special gains from asset sales booked a year earlier, despite its operational strength in its games, advertising and fintech businesses.

The Chinese videogame and social-media company said Wednesday that net profit dropped 9.4% from a year earlier to 36.18 billion Chinese yuan ($4.99 billion) for the three months ended Sept. 30. That beat the estimate of CNY32.47 billion in a poll of analysts by Visible Alpha.

The company's year-earlier results were boosted by gains from asset disposals and revaluation of certain companies it invested in.

Tencent said third-quarter revenue rose 10% from a year earlier to CNY154.625 billion.

Gross profit from its games and social-network business climbed 12% from a year earlier to CNY42.045 billion. Gross profit from its online advertising business rose 35% to CNY13.45 billion. Gross profit from its fintech and business-services segment increased 43% to CNY21.31 billion.

Write to Kosaku Narioka at kosaku.narioka@wsj.com

(END) Dow Jones Newswires

November 15, 2023 04:37 ET (09:37 GMT)

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