Tencent Holdings, the mainland's largest internet company, is stepping up its investments, despite recording slower growth in the quarter to June. The company yesterday reported a 22.6 per cent increase in second-quarter net profit to 2.35 billion yuan (HK$2.85 billion), from 1.92 billion yuan a year earlier, on steady online gaming revenue growth. But that missed market analysts' forecasts of a net profit of 2.55 billion yuan, said Thomson Reuters. Revenue rose 44.3 per cent to 6.74 billion yuan from 4.67 billion yuan in the previous year. That was more than the market's consensus estimate of 6.63 billion yuan but missed the higher forecast of 6.76 billion yuan by Deutsche Bank. However, investor confidence in Tencent remained strong and shares rose 3.53 per cent to close at HK$190.60 yesterday. Chairman and chief executive Pony Ma Huatengsaid the company - which operates online portals that provide social networking, online games, instant messaging and other services - was poised to initiate more partnerships and increase investments in strategic new areas such as e-commerce, microblogs, online security, online video and international expansion. The firm's capital expenditure in the quarter rose to 943 million yuan from 720.8 million yuan a year earlier. 'We believe the pace of innovation in the internet industry will continue to accelerate,' Ma said. 'To position ourselves for the emerging opportunities and threats, we have entered a new investment phase.' A Deutsche Bank report said Tencent was committed to doubling the amount of its 'collaboration fund' to 10 billion yuan to support its expansion initiatives.