Tencent reports Q4 profit rise
TENCENT Holdings, China’s biggest internet company by revenue, reported a 15.3% rise in quarterly profit in line with analyst estimates as growth in a budding blockbuster game helped lift tepid performances by its more mature titles.
Tencent, which has spent the last year diversifying into travel and social networking, faces stiff competition from online game operators such as Shanda Games and Netease.com, as it also seeks to maintain its high growth in online games.
Tencent posted a fourth-quarter net profit of 2.54 billion yuan, in line with analyst forecasts of 2.58 billion yuan.
Tencent’s legacy games such as Crossfire and Dungeon & Fighter posted slower gains in the quarter, while its new blockbuster title League of Legends soared.
Shares in Tencent, which is more than 30% owned by South Africa’s biggest media group Naspers, ended 0.1% higher on Wednesday before its earnings announcement versus the Hang Seng Index’s 0.2% loss.
* Fin24 is a Naspers publication.