Tencent Holdings Ltd, the world’s largest video game company and operator of the WeChat messaging platform, reported a 11% rise in first-quarter revenue on Wednesday, beating analyst expectations. The company posted 149.98 billion yuan ($21.70 billion) in revenue for the three months ended March 31, compared with the 146.09 billion yuan average of 17 analyst estimates compiled by Refinitiv. Net profit rose 11% to 25.83 billion yuan, versus a 29.67 billion yuan average analyst estimate.
Domestic gaming revenue gained 6% to 35.1 billion yuan while international gaming revenue rose 25% to 13.2 billion yuan. Revenue from online ads rose 17% to 21 billion yuan, and revenue from fintech and business services grew 14% to 48.7 billion yuan.
The firm was hit hard by the country’s now-abandoned zero-COVID policy as well as a months-long freeze on gaming licences by regulators that prevented it from releasing new games. But it is likely heading for a rebound this year after the government resumed licence approvals late last year. Tencent unveiled a long pipeline of games on Monday including seven titles ready to go online this summer.