Tencent Holdings (HKG:0700, OTC:TCEHY) Ltd saw its first-quarter 2023 revenue rise 11% year over year to 149.99 billion yuan, beating the FactSet estimate of 146.37 billion, although its net profit for the period of 25.84 billion yuan fell short of the 29.93 billion expected by analysts.
The world's largest video game company and operator of the WeChat messaging platform recorded its first annual revenue decline last year, impacted by China's zero-COVID policy and a months-long freeze on gaming licences by regulators.
The company’s earnings for the quarter, although up 10% from a year earlier were impacted by weaker non-operating gains.
Tencent noted that two of its most popular games, Honour of Kings and CrossFire, earned record revenue due to new added features and promotions.
The company’s domestic gaming revenue, meanwhile, gained 6% to 35.1 billion yuan during the period while its international gaming revenue rose 25% to 13.2 billion yuan.
As well, Tencent's revenue from online ads rose 17% to 21 billion yuan in 1Q, while revenue from fintech and business services increased 14% to 48.7 billion yuan.
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