Tencent Posts 8% Revenue Growth in Q3: Chinese tech giant Tencent has reported an impressive 8% year-on-year revenue growth for the third quarter of 2024, marking a significant rebound from its lower earnings last year. The Shenzhen-based company, one of the biggest players in China’s tech industry, saw revenue reach 167.2 billion yuan during the quarter ending September 30, driven by strong performance in its gaming division.
Tencent, which operates the widely popular WeChat super-app and has a broad portfolio in gaming, content streaming, and cloud services, attributed the revenue boost to the “robust” growth in its gaming business. The company’s evergreen games, which continue to perform well globally, along with the success of newly launched titles, have contributed to its continued expansion in the gaming sector.
The company also saw a significant jump in net profits, which soared 47% year-on-year to 53.2 billion yuan. This marks a stark contrast from 2023, when Tencent posted its lowest annual profit since 2019. In fact, Tencent has been showing impressive growth across its quarters, with a remarkable 82% increase in net profits for Q2 2024.
In addition to its gaming success, Tencent is expanding into artificial intelligence (AI), a field that is rapidly gaining momentum across China’s major tech companies, including Baidu, Huawei, Alibaba, and ByteDance. The company has stated that it is beginning to see tangible benefits from its AI investments, with plans for continued development in the sector.
Tencent’s results come amid heightened scrutiny from Chinese authorities, who have introduced a stricter regulatory environment following the 2020 crackdown on the tech sector. In addition, new measures to limit the amount of time young people can spend on online gaming have also impacted the gaming industry.
As the company continues to navigate a challenging economic environment, its strong financial performance provides a promising outlook for the future, especially as investors look to Tencent and other Chinese tech giants like JD.com and Alibaba for signs of recovery in China’s economy.
