Tencent, China's leading social media, streaming and gaming group, saw a recovery in profitability in the second quarter of the year, which the company said confirmed its position as a platform operator and content producer.
Tencent's quarterly profit rises to $6.7 billion as China gaming segment returns to growth and
Revenue for the April-June period rose 8% to RMB161 billion ($22.5 billion), but net profit rose 82% to RMB47.6 billion ($6.67 billion). On a half-year, or first-half, basis, Tencent reported revenue up 7% to RMB320 billion ($44.8 billion) and net profit up 70% to RMB89.5 billion ($12.5 billion).
Tencent Video saw year-on-year growth in video streaming subscribers of 13% to 117 million (revised). Management attributed some of the gains to intra-group synergies. Its “Joy of Life 2” and “The Legend of Shen Li” were the two most-watched drama series on Chinese online platforms in the first half of 2024. Both dramas were based on web novel IPs from listed subsidiary China Literature and produced by Tencent’s New Classics Media.
The separately reported Tencent Music division also reached 117 million paying subscribers, helped by an extensive catalog and soundtracks of Tencent Video shows.
