Tencent's Record Profit Soothes Fears It's Throwing Margins Away

Tencent Holdings Ltd. delivered record quarterly profit that reassured investors bracing for a big hit to margins from spending on everything from video to old-school retail.

While worried investors had sold off more than $90 billion of stock since January, Tencent posted a 61 percent jump in net income to 23.3 billion yuan ($3.7 billion) in the March quarter, outstripping estimates by almost a third. That’s partly thanks to a one-time gain of almost 7.6 billion yuan from its investments in arenas like video and news.

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