China’s biggest gaming company, Tencent. (Photo | AP) 
Business

China's internet giant Tencent reports 41% on-year rise in Q2 net income

While rival Alibaba was one of the crackdown's main targets, Tencent was not spared from increased oversight, with its WeChat receiving a nearly 3 billion yuan fine last month.

AFP

BEIJING: Chinese internet giant Tencent announced on Wednesday a 41 percent year-on-year jump in second-quarter net income to 26.17 billion yuan ($3.6 billion).

Following years of meteoric growth, Chinese tech firms faced a stringent crackdown by authorities in recent years, which weighed heavily on their profitability.

Tencent also announced an 11 percent increase in revenue during the second quarter, reaching 149.21 billion yuan ($20.46 billion).

In 2020, Beijing started tightening the screws on what it saw as out-of-control ballooning of the tech industry, slashing the market capitalisation of major players by billions of dollars.

While rival Alibaba was one of the crackdown's main targets, Tencent was not spared from increased oversight, with its WeChat receiving a nearly 3 billion yuan fine last month.

Tencent last year announced its first decline in quarterly sales since its listing on the Hong Kong stock exchange in 2004.

The Shenzhen-based firm is the world's largest video game company in terms of revenue, dominating the Asian market in particular.

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