Tencent Holdings reported a robust 8% increase in second-quarter revenue, reaching 161.12 billion yuan ($22.5 billion), surpassing analysts' expectations.

The company's net income for the quarter rose significantly to 47.6 billion yuan, exceeding the anticipated 39.9 billion yuan.

In the gaming sector, Tencent's revenue in China grew by 9% year-on-year, driven by the success of DnF Mobile and increased sales from Valorant.

This growth in domestic games marks a significant improvement from a 2% decline reported in the previous quarter, following government restrictions on gaming.

The Social Networks segment also contributed positively, with a 2% revenue increase to 30.3 billion yuan, supported by subscription growth in music and long-form video.

In the music streaming business, Tencent reported a 17% increase in paying users, reaching a total of 117 million, alongside a 10% rise in average revenue per paying user.

Tencent Music Entertainment Group experienced a net profit increase of 29.6%, totaling 1.68 billion yuan ($231 million) for the second quarter.

Overall, Tencent's first-half revenues rose by 7% to 320 billion yuan ($44.8 billion), reflecting strong performance across its business segments.

Looking ahead, Tencent plans to more than double its share buybacks for 2024 to over HK$100 billion, compared to HK$49 billion in 2023.

Despite geopolitical risks, Tencent remains an attractive investment opportunity, currently trading at a low valuation of less than 16 times next year's earnings estimates.

CEO Pony Ma Huateng attributed the revenue growth to increased user engagement with both new and existing games, highlighting the company's strong content strategy.

Advertising revenues also saw an increase, driven by a diversified product portfolio and innovative ad formats.