As Tencent waits to see the full effects of President Donald Trump’s executive order targeting business dealings related to its app WeChat, it posted its best quarter since 2018. The Chinese-based technology company reported one of its fastest growing quarters in two years, driven by a 40% increase in online game revenue.
Tencent — which has investments in a breadth of online and mobile games — saw its revenue grow 29% year-over-year, generating $16.53 billion in the quarter ending in June. Online game revenue was $5.5 billion, fueled by stay-at-home orders across the globe. With those orders waning, the company expects the next quarter to normalize.
The next quarter could be turbulent for Tencent as Chinese-American tensions rise. Despite approximately 19 million U.S. WeChat users, analysts don’t think the WeChat order will impact Tencent all too much. The company also has stakes in a variety of companies ranging from video games to Spotify and Snap, as well as pro sport media rights in China, including a $1.5 billion deal with the NBA.
Following Trump’s order last Thursday, Tencent stock has dropped 6.3% — it had been up 45.5% year-to-date to that point.