Tencent's Q3 Profit Soars, Adds 3,000 Jobs

Tencent Holdings, China's leading internet and gaming giant, reported a 47% increase in net profits for the third quarter of 2024, reaching 53.2 billion yuan ($7.4 billion), surpassing analyst expectations. This growth is driven by strong performances in its gaming sectors, particularly from 'Dungeon & Fighter Mobile' and 'VALORANT'. Despite the gains, Tencent's AI investments have not yet translated into substantial revenue, although they benefit its marketing and cloud services. The company added over 3,000 jobs during the quarter, indicating a return to growth after downsizing due to regulatory pressures and a weakened macro environment in China. Overall revenue grew by 8% to 167.2 billion yuan, while advertising and cloud services contributed to positive financial results. Tencent's shares have risen significantly this year, reflecting investor confidence amid China's economic recovery efforts.