On Wednesday, Tencent reported its earnings for the first quarter that beat Wall Street expectations boosted by its hugely successful gaming business.
Tencent posted a 61 percent jump in net income to 23.3 billion yuan ($3.7 billion) in the three months ended March, outstripping the 17.4 billion-yuan average projection.
Revenue rose 48% to 73.5bn yuan, compared with analyst estimates for 70.8bn yuan. That represented a quarter-on-quarter rise of 12 per cent.
Margin improvement: Operating margin was 39%, up 42% on the year and 8% on the quarter.
Tencent continues to draw the lion's share of its business from gaming, while counting on advertising and finance via WeChat to drive future growth.
Smartphone games revenue, the largest revenue contributor, jumped 68 per cent to 21.7bn yuan while revenue from the more lucrative category of PC games was flat at 14.1bn yuan.
Its gaming business drove revenues at Tencent during the quarter.
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Revenue from PC games was flat compared to past year, but analysts believe the comparison was tough with the 2017 first quarter, and overall its games business was strong.
In the video content sector, Tencent poured a total of $1.1 billion into two rivals in a 24-hour period, investing US$632 million and US$461.6 million respectively in Chinese game-streaming platforms Douyu and Huya in March. The company secured the rights to distribute both "battle royale" games in China and beyond and said it is just beginning to monetize them. The tournament-style game is popular amongst the e-sports, which is competitive video gaming. It has developed a mobile version of the former that is available globally, while it owns almost half of Epic Games, the developer of Fortnite.
That game has gone viral with more than 40 million active users monthly across consoles and PCs. (Fortnite is due to launch in China imminently). Epic is a company in which Tencent has a large stake.
Shares of Tencent have come under pressure of late and are off by 17% from an all-time high from January.
Tencent's other earnings drivers included its video subscription service, which is similar to Netflix.
The combined monthly active users of WeChat and Weixin, which is the Chinese version of the app, stood at 1,040 million at the end of March, an increase of 10.9 percent year-on-year, Tencent said in its quarterly report on Wednesday.