Tencent reported steady growth in the second quarter, with little sign of a slowdown due to the coronavirus. Revenues rose 29 percent year-on-year to CNY 114.9 billion, EBITDA increased 24 percent to CNY 40.5 billion, and the net profit was up 31 percent to CNY 32.5 billion.
The company said its business proved resilient as it focused on providing online tools for users to get through the crisis. Its games business remained strong, growing revenues 40 percent to CNY 38.3 billion, supported by demand for mobile titles like Peacekeeper Elite and Honour of Kings.
Social networks revenue rose 29 percent to CNY 26.7 billion, helped by the acquisition of Huya in April and growth in music subscriptions. Total paid subscriptions increased 20 percent year-on-year to 203 million, with video up 18 percent to 114 million and music growing 52 percent to 47 million. Tencent's newer businesses, Fintech and Business services generated revenues of CNY 29.9 billion, supported by increased average daily transactions and value per transaction on its payments platform, as well as greater use of its public cloud services.
Capital expenditures totaled CNY 9.5 billion, more than doubling from the year-earlier period. Free cash flow also more than doubled, up 127 percent to CNY 28.5 billion, and the company ended June with net cash of CNY 7.2 billion.
