Tencent reported an above-estimate revenue of RMB135.3 billion or US$20.6 billion in Q1 2021, up 25% year over year, according to the company’s press release. Operating profit also beat estimates at RMB56.3 billion or US$8.6 billion, up 51% year over year.
Tencent’s robust quarter came amid tech crackdowns by Beijing, in which companies such as Alibaba were fined for anticompetitive behavior.
Regulatory scrutiny saw Tencent’s stock shed a fifth of its value of about $200 billion since the January peak.
Revenues from smartphone games eased to a 19% year over year growth as the pandemic boosts continued to fade.
Revenue from Tencent’s fintech and business services that includes cloud operations surged 47% year over year.
Tencent reported a basic earnings per share of RMB5.020 and diluted EPS OF RMB4.917 in the quarter.
Tencent still faces regulatory scrutiny in its music division while tighter controls of the education sector could adversely affect the advertising business.
Tencent stock is currently declining. 0700: HKG is down 3.37%
