BEIJING (Reuters) - Tencent Holdings Ltd (0700.HK), China’s biggest social network and online entertainment firm, said second-quarter revenue rose 19 percent, slightly below estimates, as growth at its core gaming business slowed.
Revenue for the quarter ending June rose to 23.43 billion yuan ($3.67 billion), Tencent said in it earnings statement on Wednesday, compared to the 24.12 billion yuan forecast made in a Thomson Reuters Smartestimate poll of 11 analysts.
Revenue at the gaming unit grew 17 percent year-on-year in the quarter, a slowdown from the previous quarter’s 29 percent growth, Tencent said.
Revenue from smartphone games, a priority for the company as the popularity of PC games declines, appeared to be hardest hit, growing at just 11 percent year-on-year compared to 82 percent year-over-year in the previous three months.
Bolstering Tencent’s overall revenue was its online advertising unit, which the company said nearly doubled its quarterly revenue to 4 billion yuan.
Tencent, which operates China’s most popular messaging app WeChat, has recently ramped up online ads, following the lead of U.S. social media peer Facebook Inc (FB.O). Global monthly users of WeChat exceeded 600 million at end-June, the company said.
Tencent’s net income rose 25 percent to 7.31 billion yuan, in line with analyst expectations of 7.32 billion yuan.
Reporting by Gerry Shih; Editing by Miral Fahmy