Tencent gives way to rivals
Quarterly net income dropped 13%, stocks decline 2.5%
Stocks impacted: Tencent Holdings (TCEHY)
China's largest provider of messaging services and mobile gaming reported third-quarter results that missed revenue estimates amid the slowing economy and heightened competition in the industry. Tencent quarterly net income dropped 13% to 20.4 billion yuan ($2.9bn) in the September quarter, well below the 23.5-billion yuan estimates. The company also reported a 90% drop in one-time gains. On the positive side, Tencent total online games revenues climbed 11% to $4.1 billion, revenue from smartphone games jumped 25%, and online advertising revenue reached $2.6 billion, up 13%. The company is citing slower economic growth as the reason for weaker income figures, but many e-commerce companies such as Alibaba have managed to keep growing even in the downturn. After the data was revealed, Tencent stocks lost 2.5%.
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