(Yicai Global) Aug. 12 -- Tencent Holdings’ profit jumped a more-than-expected 37 percent in the second quarter from a year ago thanks to strong gains at the Chinese internet giant’s gaming business.

Net profit was CNY33.1 billion (USD4.8 billion) in the three months ended June 30, the Shenzhen-based company said in an earnings report published after the market closed today. That was more than the average CNY27.3 billion analysts expected. Revenue climbed 29 percent to CNY114.9 billion (USD16.55 billion).

The positive results -- also driven by a surge in value-added services, fintech and corporate services, as well as online advertising -- comes out just days after the Trump administration last week banned US companies from doing business with Tencent’s billion-user superapp WeChat from Sept. 15, citing national security concerns. The decision has lopped billions of dollars off the firm’s market value.

In the second quarter, Tencent said income from value-added business surged 35 percent to CNY65 billion due to its online gaming business and live-streaming affiliate Huya as well as premium music service membership.

Two days ago,game live-streamingrivals Huya and DouYu confirmed months of speculation that Tencent, the largest shareholder in each company, is driving merger discussions to create a USD10 billion giant.

Tencent’s online gaming income soared 40 percent to CNY38.3 billion in the quarter, while online advertising revenue rose 13 percent to CNY18.6 billion, lifted by mobile ad revenue and ads from WeChat’s Moments section.

A surge in the daily average number of transactions and the amount of money involved in each also boosted revenue growth from commercial payments as well as platforms focusing on financial products and cloud-computing services. Tencent’s revenue from the fintech sector and corporate services totaled CNY29.9 billion in the quarter, up 30 percent.

The number of monthly active accounts in WeChat and the messaging app’s overseas version totaled about 1.2 billion in the second quarter, growing by 6.5 percent from last year, while the number of active accounts of instant messaging software Tencent QQ smart terminals was 647.6 million, down 8.4 percent annually.

The number of registered accounts for Tencent’s premium value-added services was 203.4 million, a 20.4 percent jump, and the number of users paying for its online video services rose by 18 percent to 114 million, with those paying for music-related services exceeding 47 million, a 52 percent growth from the second quarter of 2019.

Shares of Tencent [HKG: 0700] closed up 1.4 percent today at HKD520.5 (USD67.2) each.

Editor: Peter Thomas