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Tencent misses revenue estimate as foe ByteDance saps online ads

Net profit up 35% as online games rebound, but battle for eyeballs intensifies

A booth for Tencent's King of Glory game at the China Digital Entertainment Expo & Conference, also known as ChinaJoy, in Shanghai.   © VCG/Getty Images

HONG KONG/GUANGZHOU -- China's leading social media and gaming company, Tencent Holdings, reported worse-than-expected revenue growth for the April-June quarter partly on the rise of ByteDance, the world's most valuable startup, whose viral short-video app TikTok gobbled up a sizable chunk of online advertising.

In its earnings filed Wednesday, Tencent said net profit grew 35% on the year to 24.1 billion yuan ($3.4 billion), beating the average forecast of 20.7 billion yuan. The slowdown in online ads, however, cast a cloud on the company's strategy going forward.

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