Tencent Beats Profit Estimates as Consumers Turn to Social Media

(Bloomberg) — Tencent Holdings Ltd.’s earnings beat estimates after video advertising on WeChat propelled growth, a sign that Chinese consumers are turning to social media and games despite a nationwide downturn.

The WeChat operator reported growth across divisions from gaming and advertising to fintech, driving a 10% gain in revenue to 154.6 billion yuan ($21.4 billion) for the September quarter. Net income slid a less-than-expected 9%, reflecting both ramped-up spending on content and a big one-off gain in the year-ago quarter when Tencent disclosed it would pare its stake in Sea Ltd. Shares in Prosus NV, a proxy for Tencent as its largest shareholder, climbed more than 6% in Europe.