HONG KONG (Nikkei Markets) -- Chinese internet giant Tencent Holdings reported a 52% jump in fourth quarter profit on the back of accelerating revenue from online games and financial technology services.
Net profit for the quarter ended December stood at 21.58 billion yuan ($3.02 billion), compared with 14.23 billion yuan a year ago, the company said in an exchange filing Wednesday. Revenue grew 25% to 105.77 billion yuan.
The online gaming business grew 25% on year to 30.29 billion yuan, primarily driven by revenue growth from smart phone games in both domestic and overseas markets, it said.
Tencent, China's top games publisher, is recovering from the impact of a months-long freeze on approvals in 2018 that had dried up new game launches last year.
The Sino-American trade war, which had hurt the Chinese economy in 2019, and rising competition for online advertising venues from new entrants such as ByteDance, the creator of the popular short-form video app TikTok, intensified a challenge to the Hong Kong-listed company's growth prospects.
Revenue from Tencent's financial technology and cloud services business jumped 39%, while online advertising revenue surged 19%.
The company said it set a final dividend of HK$1.20 a share, compared with HK$1 a share a year ago.
-- Benny Kung