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Tencent's Revenue Jumps 8% After Successful Game Launches This Summer

Nov 13, 2024, 4:26 a.m. ET

Asianfin -- Tencent Holdings Ltd. reported an 8% increase in revenue following the summer release of *Dungeon & Fighter Mobile*, which helped the company weather a challenging economic environment in China.

For the three months ending in September, Tencent's revenue reached 167.2 billion yuan ($23.1 billion), in line with analyst expectations. Net income was 53.2 billion yuan, surpassing projections of 45.3 billion yuan.

The world's largest video game publisher saw strong performance thanks to *Dungeon & Fighter Mobile*, developed in collaboration with Nexon Co., which played a key role in turning around its core gaming division. Tencent also supported the success of *Black Myth: Wukong*, a record-breaking PC game, further solidifying its reputation as a major industry financier. These hits boosted optimism that Tencent may be better positioned to withstand the economic downturn in China compared to rivals like Alibaba Group and JD.com, both of which are facing challenges due to weakened consumer spending.

“Games are crucial for Tencent’s long-term strategy,” said Morningstar analyst Ivan Su in an October report. “The company’s shift toward more in-house game development, moving away from a marketing-focused model, will improve its creative control and help ensure a steady stream of high-quality games.”

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