(Yicai Global) Aug. 15 -- Chinese internet giant Tencent Holdings made CNY51.4 billion (USD7.5 billion) in the first half, up 25 percent annually thanks to the resurrection of the nation's video gaming sector.

Revenue was up 18 percent on the year at CNY174 billion, with CNY88.8 billion coming in the second quarter, the Shenzhen-based firm said in its latest report yesterday. Income from video games -- its largest source of revenue -- rose 8 percent to CNY27.3 billion and some CNY22.2 billion came from smartphone games, up 26 percent.

Its share price [HKG:0700] was down 2.35 percent at HKD332.0 (USD42.35) as of 11.05 a.m. as investors focused revenue missing estimates rather than profit surpassing them.

Tencent was able to release more titles this year as Chinese regulators began issuing licenses following a 13-month ban on new games. The State Administration of Press, Publication, Radio, Film and Television, China's former media watchdog, stopped licensing new games for commercialization in March 2018 to undergo an institutional reform. Its successor resumed reviews in December and lifted the application suspension in April.

The firm added 10 new titles in the second quarter, compared with one in the first.

Game for Peace, it mobile version of multiplayer battle royale PlayerUnknown's Battlegrounds, has racked up more than 50 million daily active users since being published in May, the company said, adding that though it is now bringing in revenue it contributed little to second-quarter earnings.

Social network revenue was up 23 percent on the year at CNY20.8 billion in the three months ended June, and WeChat took its monthly active user tally to 1.13 billion, up 7 percent on the year, according to the report. Income from online ads climbed 16 percent to CNY16.4 billion, while fintech and corporate services surged 37 percent to CNY22.9 billion

Editor: James Boynton