Tencent beats second-quarter earnings estimates due to strong entertainment demand

On Wednesday, China’s gaming and social media giant Tencent Holdings Ltd (00700.HK) announced that its second-quarter net revenue was up by 37% worth 114.88 billion CNY.

The multinational conglomerate holding company said that it managed to beat analysts’ expectations due to strong demand for in-home entertainment options and fast growth of its gaming business.

“In China, user time spent on our smartphone games increased year-on-year but decreased quarter-on-quarter due to seasonality and back-to-office behavior. Internationally, our MAU (monthly active users) increased significantly year-on-year and quarter-on-quarter due to new game launches and more user time spent during the stay-at-home period,” Tencent said in its earnings release.

According to Tencent, its media advertising and cloud businesses were still affected by the coronavirus pandemic. The company said that it dampened advertising demand and disrupted project deployment.