Tencent Holdings Limited (OTC: TCEHY) posted impressive third quarter results last week. The world's largest video game company and operator of the WeChat messaging platform showed that the gaming segment rebounded from China’s tech regulatory crackdown, along with shining advertising sales. Earlier this month, Tencent revealed it made a deal with Meta Platforms (NASDAQ: META) to sell its VR headsets. This move will allow Meta to return to China and face Apple Inc (NASDAQ: AAPL) whose new mixed-reality headset Vision Pro should go on sale early next year.
Tencent’s Third Quarter Highlights
Tencent posted a revenue of 154.6 billion yuan which equates to about $21.4 billion, in line with estimates. This is Tencent’s third consecutive quarter of revenue growth.
Domestic games revenue rose 5%, driven by titles such as "Lost Ark" and "Valorant", which Tencent launched in July and for the first time in China.
Online advertising business reported revenue rose 20% on the back of strong demand for advertising in its video content. Over the recent quarter, e-commerce companies have "become a much bigger contributor to Tencent’s ad revenue. Tencent also noted that these companies tend to advertise in the second half of the ...
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