Martin Lau, President, Tencent. Photo credit: World Economic Forum, licensed under Creative Commons

Chinese internet giant Tencent has released its earnings results for the third quarter of 2020, revealing $18.4 billion in revenue, up 29% year-over-year, and a net profit of $4.9 billion, up 33% year-over-year. The Chinese company had a strong quarter that was buoyed by surging revenues from online advertising and gaming, wherein gaming revenue grew 45% year-over-year and online advertising grew 16% year-over-year.

The online advertising market has gradually recovered from a slump that swept through in the early months of the coronavirus pandemic. On the other hand, the gaming market was buoyed by increased activity in the early months of the pandemic and has continued on that path, signaled by a 45% revenue growth from that sector for Tencent. From gaming, Tencent pulled in about $6.3 billion in revenue during the quarter.

In addition to advertising and gaming, Tencent has a very strong ‘Fintech and Business Services’ segment that pulled in $5 billion in revenue during the quarter, up 24% year-over-year. Revenue from Business Services actually slowed down due to the coronavirus pandemic but was made up for by higher revenues on the Fintech side from commercial payments and wealth management.

Tencent ended the quarter with $39 billion in cash on its balance sheet.

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