Tencent Holdings Ltd. the internet giant based in China posted a jump of 69% in net profit for the quarter, easily beating Wall Street estimates, thanks to strong revenue growth from its games on smartphones and payment services.
Net profit during the three-month period ending in September increased to over 18 billion yuan equal to $2.72 billion, said China’s largest gaming and social media company in one of its filings for the Hong Kong Stock Exchange. The average estimate for profit during the period was 15.2 billion yuan.
Revenue for Tencent was up 61% to over 65 billion yuan, which beat estimates that averaged 60.8 billion yuan.
The market capitalization of Tencent in 2017 reached over $472 million on Wednesday, which made it the most valuable company in Asia.
Monthly active users on its WeChat social media app surpassed 980 million, which increased from the prior quarter of 963 million.
Tencent said that daily messages that were sent on its app increased to more than 38 billion, or experienced a growth of over 25%.
Revenue from its smartphone games increased 84% to more than 18.2 billion yuan for the quarter, led by the strength of games such as Honour of Kings, the popular online multiplayer battle arena game.
The role-playing fantasy game that is based upon historical characters in China, become so popular Tencent was required to implement curbs on the play timer earlier in the year amidst reports of serious problems of addiction amongst children.
Revenue at Tencent for its PC games was up 27% ending the quarter at 14.5 billion yuan, while its revenue for online advertising increased by 48% to more than 11 billion yuan.
Revenue from its other businesses, mainly its cloud and payment-related services more than doubled during the quarter.
The monthly offline volume of payments for the company were higher by 280%. Tencent Cloud grew its global coverage as it is now operating in 36 zones across the globe, said the company on Wednesday.
Tencent said as well that it recorded quick growth in its digital content and subscription services.
Its equivalent to YouTube, Tencent Video, has over 43 million paid subscribers, which makes it the video streaming service that has the largest base of subscribers in China
Shares of stock at Tencent have increased more than 100% this year versus a broader market gain in the .HSI of 31%.