Sometimes described as the world’s largest gaming company in terms of revenue, China’s Tencent increased its net profit by 47% in the three months from July to September. Earnings were generated by both its domestic and international gaming businesses.

Besides gaming, Tencent is the largest social media company in China, thanks to its ubiquitous messaging platform (WeChat/Weixin) and the largest long-running video streamer (Tencent Video and WeTV). In the music sector, Tencent is the largest music distributor in China and has significant investment stakes in both Spotify and Universal Music Group.

For the third quarter of the current year, the group reported revenue of RMB 167 billion (US$23.9 billion), up 8% from the previous year. Net profit was RMB 54 billion ($7.7 billion), leaving it with $13.6 billion in net cash (even after share buybacks).

International game revenue was RMB 14.5 billion, up 9% year-on-year (or 11% at constant currency), driven by robust game performances including “PUBG MOBILE” and “Brawl Stars”. “Revenue growth for International Games substantially lagged gross receipts growth as improved retention rates for certain titles caused us to extend our revenue deferral periods,” the company said. Game revenue in China increased 14% year-on-year to RMB 37.3 billion, thanks to games such as “VALORANT”, “Honor of Kings”, “Peacekeeper Elite” and “DnF Mobile”.

Evergreen games, “Naruto Mobile” and “VALORANT” hit new quarterly average daily user (DAU) highs. It released “Delta Force”, the company’s first multi-platform first-person shooter, which achieved an average daily time spent and high user retention rates.

In international markets, VALORANT has expanded from PC to PlayStation and Xbox with the release of its console version in five key international markets. The game grew its gross by more than 30% year-over-year during the quarter.

Long-form video subscriptions rose 6% year-over-year to 116 million after switching to a calculation based on daily subscribers. It attributed the rise to “popular animation and drama series”.

Its digital music operations, Tencent Music Entertainment reported its financial performance on Tuesday. These saw streaming music subscriptions grow by two million to 119 million, while also increasing average revenue per user. Its still profitable social music entertainment businesses (karaoke and live streaming) reported barely changed subscription numbers but suffered a 25% drop in revenue per user.

Tencent’s earnings statement confirmed that the booming outlook for its value-added service businesses was “partially offset by a decline in live streaming revenue related to music and games.” This reflects a regulatory environment that has placed increased controls on live entertainment and made it more difficult to sell.