By Sherry Qin
Chinese technology giant Tencent reported a sharp rise in profit for the first quarter, buoyed by rapid growth in its high-margin businesses.
The Chinese videogame and social-media company said Tuesday that its net profit rose 62% to 41.89 billion yuan ($5.79 billion), higher than CNY35.61 billion expected in a FactSet poll of analysts.
The Shenzhen-based company's gross profit margin expanded to 53% from 45% a year earlier, supported by high-margin businesses, such as video accounts and search advertisements.
Revenue for the period rose 6% from a year earlier to CNY159.50 billion as solid ad revenue offset weakness in its gaming segment. Online ad revenue came in at CNY26.51 billion, up 26%.
Tencent's domestic game sales fell 2% on the year amid a lack of meaningful title releases during the period. That compared with a 3% decline in the fourth quarter.
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
05-14-24 0507ET