Better-than-expected quarterly results from China’s Tencent gave the JSE a R70bn boost on Wednesday. Tencent, which owns the WeChat messaging platform, said profit in the first quarter of 2018 rose 61% to RMB23.3bn (R45.5bn) as revenue increased 48% to RMB73.5bn and margin grew. The rise in profit was partly thanks to one-off gains. Naspers, which owns 31.2% of Hong Kong-listed Tencent, closed 5.2% higher at R3,260 on Wednesday – raising its market capitalisation by R70bn. That gain in value dwarfs the R27bn Naspers raised earlier in May by selling its stake in Indian e-commerce business Flipkart to Walmart. Naspers also recently raised HK$77bn (R122bn) by trimming its stake in Tencent. While consensus expectations were less optimistic, independent investment analyst Mark Ingham said Tencent’s quarterly results “came in as I expected”. “You should expect earnings growth to lag revenue, with margins settling in the 30% area in the next couple of years,” Ingham told Business Day from ...

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