KEY POINTS
  • Tencent on Wednesday reported a surge in profit for the second quarter, but missed expectations.
  • Tencent is now starting to see the benefits of the cost-cutting drive it embarked on last year, when it exited non-core businesses and tightened marketing spending.
  • But the weaker than expected revenue growth continues to reflect the turbulent Chinese economy which has failed to recover after the pandemic as strong as many had thought.

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Tencent has faced a number of headwinds in 2022 including a Covid-induced slowdown in the Chinese economy and a tougher market for gaming.

Tencent on Wednesday reported a weaker-than-expected surge in profit for the second quarter, as cost-cutting measures began to pay off and sales rose across the company's various businesses.

Here's how Tencent did in the second quarter, versus Refinitiv consensus estimates:

In this article