Tencent’s profit beat soothes fears of China downturn fallout

Tencent Holdings Ltd.’s earnings beat estimates after online advertising rebounded, a sign that Chinese consumers are turning to social media and games despite a nationwide downturn.

The WeChat operator reported growth across divisions from gaming and advertising to fintech, driving a 10% gain in revenue to 154.6 billion yuan ($21.4 billion) for the September quarter. Net income slid 9%, reflecting ramped-up spending on content, but still exceeded expectations at 36.2 billion yuan. Shares in Prosus NV, a proxy for Tencent as its largest shareholder, climbed more than 4% in Europe.