HONG KONG (Nikkei Markets) -- Chinese internet services major Tencent Holdings on Wednesday reported a 17% increase in quarterly profit, helped by stronger revenue from payments and advertising related services even as gaming revenues weakened.
Net profit for the first quarter ended March climbed to 27.21 billion yuan ($3.96 billion) from 23.29 billion yuan a year ago, the Shenzhen-based company said in an exchange filing. Revenue increased 16% to 85.47 billion yuan.
Revenues from online advertising increased 25% on year to 13.38 billion yuan for the first quarter, while revenue from its financial technology and business services grew 44% to 21.8 billion yuan, it said. The company's online gaming revenue fell 1% to 28.5 billion yuan weighed down by delay in approvals of some of its blockbuster games amid stricter regulations in China.
Tencent, the world's largest gaming company by revenue, has grappled with a slowdown over the past year after Chinese regulators stopped approving new games last year due to concerns about violent content, addiction, and deteriorating eyesight, especially among the young. Tencent's games are available in other countries. Still, a large share of its revenue comes from China, the world's largest gaming market.
"In the second quarter of 2019, we have released and will release several mid to hard core games, including action, role-playing games and simulation game titles, as well as our tactical tournament title, Peacekeeper Elite," it added.
Tencent shares rose 0.9% to HK$374 in Hong Kong before the results were announced.
-- Lopamudra Bhattacharya