Tencent shares hit a more than 2-year high after smartphone games led to an earnings beat

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Tencent's financial figures got a boost from people in China playing the company's smartphone games while under lockdown, while other parts of the business such as advertising held up well.

The Chinese technology giant's shares, which are listed in Hong Kong, hit an intra-day high of 447 Hong Kong dollars , putting them around 4% higher from Wednesday's closing price.Tencent shares pared some of those gains in early trade but were still higher.

On Wednesday after the Hong Kong market close, Tencent said revenue for the March quarter totaled 108 billion Chinese yuan representing a 26% year-on-year rise. Profit attributable to equity holders of the company hit 28.9 billion yuan. Both figures beat analyst forecasts. The coronavirus epidemic swept across China earlier this year leading to the country effectively being locked down. People stuck at home turned to smartphone games for entertainment which gave Tencent a boost as the country's largest game maker. Online games revenue grew 31% year-on-year to 37.3 billion yuan in the first quarter, with the bulk of that coming from mobile games.However, the company flagged some potential headwinds going forward.

In a statement, Tencent said it expects "in-game consumption activities to largely normalise as people return to work" adding that it sees "some headwinds for the online advertising industry."

 

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Because the world let it buy most of game design studios. It is one of the case the world kowtow to China CCP.

Tencent hits and beats to death innocent peaceful minority, Uyghurs, Tibetans and Cantonese. If you support Tencent, then you support the murderous tyrannical racist CCP genocide. FreeHongKong

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