Chinese tech giant Tencent Holdings posted a 61 per cent year-on-year jump in profit, sending its market capitalization uo by as much as $34bn today.
Tencent said mobile game revenue hit 21.7 billion yuan (about US$3.4 billion) during Q1 2018, up 68 percent year-on-year, while PC-based games saw sales of 14.1 billion yuan (over US$2.2 billion), roughly the same figures as Q1 2017.
Smartphone game revenue soared while PC gaming revenue was flat as PC gaming users fell.
With strong cashflows and a huge customer base in excess of one billion users, Tencent has been aggressively seeking out start-ups with good potential and boosting their chance of success by providing funding support as well as customer traffic. Revenue grew by 48% from the same period previous year on the back of strong performance in its online advertising, gaming and messaging services. Net profits increased 65% year-on-year to reach $3.82 billion on revenues of $11.7 billion in the three months to end of March. Revenue was 48% up on a year on year basis.More news: Senate confirms Gina Haspel to lead Central Intelligence Agency , first woman to hold post
Tencent and rival Alibaba - two of the world's most valuable companies - are jockeying to build competing all-in-one online-services ecosystems that cater to China's hundreds of millions of digital-savvy consumers.
Its gaming business drove revenues at Tencent during the quarter.
Many investors have been concerned that the massive growth Tencent has seen could be hampered due to rising competition and investment in new areas like video streaming and payments which could force the company to spend more. Fortnite has been developed by video game developer Epic Games who Tencent has a stake in - the game is now unavailable in China, but there are plans to launch the game in the region in the coming months.
Profit was also helped by one-time gains of nearly 7.6bn yuan from its investments in arenas like video and news. Naspers Ltd., which as Tencent's top shareholder is often regarded as a proxy for the Chinese firm, rose more than 6 percent Wednesday.More news: Suicidal Thoughts, Attempts On The Rise Among Young People: 'It's A Critical Public-Health Crisis Right Now'
Tencent also runs two messaging services.
For the first time, WeChat's monthly active users passed 1 billion.
Despite criticism that Tencent has lost its innovation ability and has become more like an investor, the company has proved that its investing activities actually go hand in hand with the development of its core business.More news: Nanoco's (NANO) "Purchase" Rating Restated at Peel Hunt