Tencent Holdings reported an 8% increase in second-quarter revenue on Wednesday, marking a notable rebound in its gaming business following the successful launch of a new mobile game in May. The world's largest video game company and operator of the WeChat messaging platform achieved revenue of 161.12 billion yuan ($22.5 billion) for the quarter ending June 30, surpassing analysts' expectations of 160.77 billion yuan, according to LSEG data.
The growth in revenue reflects a recovery in Tencent's core gaming division, which had previously faced challenges, including a decline in China revenue over the past two quarters. This downturn was partly attributed to the rise of competitive games from rival companies. However, the release of the highly anticipated "Dungeon & Fighter Mobile" in May has significantly boosted Tencent’s performance, with the game dominating top-grossing charts on Apple's iOS platform in China for nearly a month.
For the April-June quarter, Tencent reported a 9% increase in domestic gaming revenue, reaching 34.6 billion yuan, while international gaming revenue also rose by 9% to 13.9 billion yuan. This resurgence is a key factor in the company's overall revenue growth.
In addition to its gaming success, Tencent has made significant strides in shareholder returns. The company disclosed spending HK$52.3 billion ($6.71 billion) on share repurchases in the first half of 2024, in line with its commitment to increase buybacks for the year. Earlier, Tencent had pledged to more than double its 2024 buyback target to over HK$100 billion, up from HK$49 billion in 2023.
The surge in share buybacks among Chinese tech firms is part of a broader strategy to boost investor confidence as the sector navigates the aftermath of a regulatory crackdown. This move comes against the backdrop of concerns over China's slowing economic growth.
Overall, Tencent's strong quarterly performance and strategic focus on returning value to shareholders highlight a positive shift for the company and the gaming sector, demonstrating resilience amid economic and regulatory challenges.
(Source:www.usnews.com)
The growth in revenue reflects a recovery in Tencent's core gaming division, which had previously faced challenges, including a decline in China revenue over the past two quarters. This downturn was partly attributed to the rise of competitive games from rival companies. However, the release of the highly anticipated "Dungeon & Fighter Mobile" in May has significantly boosted Tencent’s performance, with the game dominating top-grossing charts on Apple's iOS platform in China for nearly a month.
For the April-June quarter, Tencent reported a 9% increase in domestic gaming revenue, reaching 34.6 billion yuan, while international gaming revenue also rose by 9% to 13.9 billion yuan. This resurgence is a key factor in the company's overall revenue growth.
In addition to its gaming success, Tencent has made significant strides in shareholder returns. The company disclosed spending HK$52.3 billion ($6.71 billion) on share repurchases in the first half of 2024, in line with its commitment to increase buybacks for the year. Earlier, Tencent had pledged to more than double its 2024 buyback target to over HK$100 billion, up from HK$49 billion in 2023.
The surge in share buybacks among Chinese tech firms is part of a broader strategy to boost investor confidence as the sector navigates the aftermath of a regulatory crackdown. This move comes against the backdrop of concerns over China's slowing economic growth.
Overall, Tencent's strong quarterly performance and strategic focus on returning value to shareholders highlight a positive shift for the company and the gaming sector, demonstrating resilience amid economic and regulatory challenges.
(Source:www.usnews.com)