(MENAFN- Asia Times) Chinese Internet giant Tencent has released its first quarter financial performance, recording a net profit of US$3.704 billion, a 61% rise from a year earlier and far beyond market expectation, The Paper reported.
The report shows that Tencent's total revenue in the first quarter was US$11.69 billion, rising 48% from the same period last year, driven by growth in mobile games, digital payment services, digital content subscriptions and social advertising.
Tencent's stock price began to fall sharply ever since its financial report was released last quarter. Investors began to worry that their margins were under greater pressure, as the company continued to increase its investment to high-growth markets such as streaming video, digital payment, smart retail, cloud services and artificial intelligence.
In addition, Tencent's largest shareholder, Naspers, reduced 2% of its holdings. However, some investors believe that Tencent's stock price is being underestimated. With its multi-strategic investments, the Tencent ecosystem is gradually expanding.
The stock price closed at HK$396.2 per share on Wednesday.
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