Log in
Log in
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
Sign up
Or log in with
GoogleGoogle
Twitter Twitter
Facebook Facebook
Apple Apple     
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexCryptocurrenciesCybersecurityPress Releases

China's Tencent reports first-ever revenue drop

08/17/2022 | 10:26am EDT

STORY: Tencent reported its first ever quarterly sales fall on Wednesday (August 17).

The tech giant was hit hard by a government clampdown on game approvals and playing time.

Chinese regulators have not yet given the firm a new gaming license after they temporarily stopped approvals.

Tencent said revenue fell 3% to just under $20 billion for the three months ended June.

Net profit fell by more than half to around $2.7 billion - below analyst forecasts.

The company also dealt with a weakening economy that has led to advertisers spending less than before.

Ad revenue fell by almost a fifth as a result.

Online gaming is Tencent's big profit driver, but that was down both at home and abroad.

The quarterly loss is new territory for the Chinese firm, as it had reported double digit growth in almost every quarter since it went public in 2004.

It's not just Tencent feeling the pain in China's tech sector.

E-commerce giant Alibaba reported flat quarterly revenue growth for the first time in its history this month.

Reports also said Tuesday (August 16) that Tencent planned to sell most of its $24 billion stake in delivery firm Meituan.

Sources said that was partly to please Chinese regulators.

Tencent has lost almost 60% of its market value since it peaked in February last year, but the $373 billion company is still China's most valuable.


© Reuters 2022
Stocks mentioned in the article
ChangeLast1st jan.
ALIBABA GROUP HOLDING LIMITED 1.18% 79.99 Delayed Quote.-32.66%
MEITUAN INC. -2.48% 161.5 Delayed Quote.-26.53%
TENCENT HOLDINGS LIMITED -2.25% 260.4 Delayed Quote.-41.68%
Latest news "Economy & Forex"
12:16aEMEA Morning Briefing : Stocks to Fall as -2-
DJ
12:16aEMEA Morning Briefing: Stocks to Fall as Volatility Expected to Continue
DJ
12:16aNews Highlights: Top Financial Services News of the Day
DJ
12:15aIndian shares down as metals, IT drag amid global growth concerns
RE
12:15aIndonesia's NasDem party endorses outgoing Jakarta governor for 2024 presidential race
RE
12:11aSterling down 0.65% to $1.1092…
RE
12:10aCopper snaps 4-session winning streak on risk-off sentiment
RE
12:01aItaly's economy to shrink for 3 straight quarters, Treasury says
RE
10/02Malaysia's commodities minister says crude palm oil price weakness is temporary
RE
10/02Azerbaijan proposes bringing forward Armenia talks to October because of tension
RE
Latest news "Economy & Forex"