Tencent reported an 8% increase in its second-quarter revenue, primarily driven by the recovery of its gaming business.


Tencent Holdings, the Chinese technology giant, announced an 8% increase in its revenue for the second quarter on Wednesday, attributed to a resurgence in its gaming sector following the successful launch of a new mobile game in May.

The company, recognized as the largest video game entity globally and the operator of the WeChat messaging service, reported revenue of 161.12 billion yuan ($22.5 billion) for the quarter ending June 30.

This figure surpassed analysts' expectations, which had estimated revenue at 160.77 billion yuan, according to LSEG data.

The core gaming division of Tencent had encountered challenges, with domestic revenue in China declining for two consecutive quarters since the fourth quarter of the previous year, largely due to the competitive success of rival games.

However, signs of recovery are emerging, bolstered by the launch of the highly anticipated "Dungeon & Fighter Mobile," which dominated the top-grossing charts on Apple's iOS platform in China for nearly a month following its May release, as per industry reports.

In the April to June quarter, Tencent's domestic gaming revenue increased by 9% to 34.6 billion yuan, while international gaming revenue also saw a 9% rise to 13.9 billion yuan.

The company disclosed that it allocated HK$52.3 billion ($6.71 billion) for share repurchases in the first half of 2024, prior to expenses.

Earlier this year, Tencent committed to more than doubling its buyback program for 2024 to over HK$100 billion, up from HK$49 billion in 2023.

In response to a regulatory crackdown, Chinese technology firms have ramped up share buybacks to enhance investor confidence, a trend that arises amid concerns regarding the slowing growth of China's economy.