Tencent Holdings (0700.HK), opens new tab, announced an 8% increase in revenue for the second quarter on Wednesday, fueled by a rebound in its gaming division following the successful launch of a new mobile game in May.
The operator of the WeChat messaging network and the biggest video gaming firm in the world said that its revenue for the quarter ending June 30th was 161.12 billion yuan, or $22.5 billion. LSEG data shows that analysts had projected sales of 160.77 billion yuan.
Since the fourth quarter of last year, Tencent’s main gaming sector has experienced challenges. In China, revenue has decreased for two quarters in a row, in part due to the successful launch of alternative games by rival companies.
Industry data indicates that it is now beginning to show signs of recovery, aided by the arrival of the eagerly anticipated “Dungeon & Fighter Mobile” game, which for over a month after its debut in May topped the top-grossing charts on Apple’s iOS platform in China.
Tencent’s gaming revenue for the April–June quarter jumped 9% to 34.6 billion yuan in the home market, while it gained 9% to 13.9 billion yuan internationally.
Before expenditures, the business reported that it repurchased shares for HK$52.3 billion ($6.71 billion) in the first half of 2024.
Tencent promised earlier this year to more than treble its 2024 buybacks from HK$49 billion in 2023 to above HK$100 billion.
As the internet industry bounces back from a regulatory crackdown, Chinese tech companies have stepped up share buybacks to bolster investor confidence. Concerns about China’s faltering economic development are behind this trend.
