Tencent Posts First-Ever Revenue Decline

Tencent Posts , First-Ever Revenue Decline.

CNN reports that on Aug.

17, China's Tencent said that its quarterly revenue fell 3% to $19.78 billion.

Net profit provided by equity holders fell 56%.

Revenue from online games decreased by 1% both domestically and abroad.

Ad revenue dropped 18% to $2.74 billion.

According to CNN, COVID lockdowns, fewer game approvals and gaming regulations are to blame.

This is the first time that the gaming giant has had declining sales since going public in 2004.

In almost every other quarter until now, Tencent reported double-digit growth.

.

Following Beijing's regulatory crackdown in 2020, Tencent remains China's most valuable company.

Despite losing almost 60% of its market value since a Feb.

2021 peak, Tencent is still a $373 billion company.

The company's social network services saw a 1% revenue increase after its messaging platform, WeChat, brought in more from its video content.

In the short term, that may be its biggest growth driver.

, Shawn Yang, manager director of Blue Lotus Capital Advisor, in reference to WeChat video revenue, via CNN