Tencent Doubles Profit But Warns Spending to Weigh on Margins (original) (raw)

Tencent Holdings Ltd. said investments in content and technology will weigh on margins after Asia’s most valuable company posted quarterly profit that topped projections.

Plans by the Shenzhen-based company to keep spending on areas including artificial intelligence and video may weigh on short-term profitability but it expects the investments will anchor long-term growth. Tencent reported net income almost doubled to 20.8 billion yuan ($3.3 billion) in the three months ended December, beating the 16.6 billion-yuan expected by analysts.