Tencent Profits Slump on Weak Games, Regulatory Impact
variety.comPatrick Frater Asia Bureau ChiefTencent, the Chinese games and social media giant, revealed a more than 50% drop in profits for the three months to June 2022, the second quarter of its financial year.
The figures were affected by a slowing economy in China, an operating environment made harder by regulatory changes and a slowdown in video games as users adjusted to post-pandemic activity.Net profits for the quarter weighed in at RMB19.2 billion ($2.83 billion), which represented a 55% slump compared with the same quarter in 2021, and down 19% compared with the first quarter of the current year.
Revenues were RMB134 billion ($19.8 billion), down 3% year of year and down 1% quarter on quarter.Over six months, revenues were down just 1% at RMB270 million ($39.8 billion).
But net profits were RMB43 billion ($6.34 billion), a 53% fall. “During the second quarter, we actively exited non-core businesses, tightened our marketing spending, and trimmed operating expenses, enabling us to sequentially increase our non-IFRS earnings, despite difficult revenue conditions,” said Pony Ma, Tencent’s chairman and CEO. “Looking forward, we will focus on enhancing the efficiency of our businesses and launching new revenue initiatives, including in-feed advertisements in our popular video accounts, while continuing to drive innovation through R&D.
Read more on variety.com
