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• Net profit of the company fell 51% to 23.4 billion yuan
Tencent Holdings Ltd (OTC: TCEHY) on Wednesday posted biggest profit decline since 2004 when it went public, amid China’s crackdown on tech companies and Covid-19 lockdowns.
Net profit of the company fell 51% to 23.4 billion yuan while its revenue rose 0.1% from a year earlier to 135.47 billion yuan, or $21.3 billion.
The videogame giant missed analysts’ expectations surveyed by FactSet for both profit and revenue in the quarter.
Due to Chinese authorities’ crackdown, the company had experienced lower advertising and videogaming revenues over the past year. With new restrictions amid Covid-19 resurgence in the country, Tencent warned delayed recovery of its advertising business.
Executives are optimistic as Beijing has recently signalled to ease its crackdown on Chinese tech companies.
In April, China resumed granting videogame licenses after suspending such approvals for months.
Picture Credits: Reuters
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