Warnings that Tencent, Asia’s highest-valued tech company, might suffer a rare poor quarter of business proved unwarranted after the company smashed analyst expectations for its latest earnings thanks to its fast-growing mobile games business.
The company reported a net profit of 23.29 billion CNY ($3.7 billion) on revenue of 73.53 billion yuan ($11.5 billion) — beating a Thomson Reuters estimate of 71.04 billion CNY revenue. Net profit was up 61 percent year-on-year, while revenue increased 48 percent over the same period.
Tencent has historically done well in the games space with the PC its cash cow, but last year its smartphone games business overtook that of PC based on revenue.
The gap is now becoming noticeable and there’s plenty of scope for…