Tencent logo seen displayed on a smartphone.<\/p>\n
Omar Marques | SOPA Images.| LightRocket | Getty Images<\/p>\n
Tencentshares soared to a more than two-year high on Thursday after reportingfirst-quarter earnings that beat expectations.<\/p>\n
However, the Hong Kong-listed shares of the Chinese technology giant gave up some gains to close 0.23% higher, after a volatile session that saw its stock price swing between positive and negative territory<\/p>\n
Tencent shares had earlier hit an intra-day high of 447 Hong Kong dollars ($57.67), putting the shares around 4% higher from Wednesday's closing price.That was the highest level since an intra-day high of $458.96 Hong Kong dollars on March 22, 2018.<\/p>\n
On Wednesday after the Hong Kong market close, Tencent said revenue for the March quarter totaled 108 billion Chinese yuan($15.2 billion) representing a 26% year-on-year rise.Profitattributable to equity holders of the company hit 28.9 billionyuan. Both figures beat analyst forecasts.<\/p>\n
The coronavirus epidemic swept across China earlier this year leading to the country effectively being locked down. People stuck at home turned to smartphone games for entertainment which gave Tencent a boost as the country's largest game maker.Online games revenue grew 31% year-on-year to 37.3 billion yuan in the first quarter, with the bulk of that coming from mobile games.<\/p>\n
Meanwhile, Tencent's advertising business, which was a worry going into the earnings report, held up well.<\/p>\n
However, the company flagged some potential headwinds going forward.<\/p>\n
In a statement, Tencent said it expects \"in-game consumption activities to largely normalise as people return to work\" adding that it sees \"some headwinds for the online advertising industry.\"<\/p>\n
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Tencent shares hit a more than 2-year high after smartphone games led to an earnings beat - CNBC<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Tencent logo seen displayed on a smartphone. Omar Marques | SOPA Images.| LightRocket | Getty Images Tencentshares soared to a more than two-year high on Thursday after reportingfirst-quarter earnings that beat expectations Continue reading