Tencent reboots profits as growth picks up beyond games

Earnings beat market expectations, but stricter online ad regulations loom

20180815N tencent headquarters

Interior view of the headquarters of Tencent in Shenzhen, in China's Guangdong province.

COCO LIU, Nikkei staff writer

HONG KONG -- China's Tencent Holdings handed investors a much-needed profit recovery in the third quarter as revenue rose beyond online games, but the company warned that stricter regulation by Beijing on online advertising could sap growth.

The social media and online game group, which has lost about 40% of its market value since March as China has stalled approval of new games, beat market forecasts thanks to contributions from ads and cloud computing.

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