China’s Tencent Holdings reported a smaller-than-expected 11 per cent increase in second-quarter revenue on Wednesday as the social media and gaming giant’s comeback from last year’s record fall was hampered by the nation’s sluggish economic recovery.
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The owner of the WeChat messaging service and the biggest video game developer in the world reported revenue of 149.20 billion yuan ($20.45 billion) for the three months ending June 30. This contrasted with the average of 21 analyst projections, which came to 151.73 billion yuan.
In comparison to the same period in the previous year, net profit increased 41 per cent to 26.17 billion yuan. However, it was below the average expectation of 33.41 billion yuan.
Tencent had its first-ever sales decrease during the same period last year, seeing a one per cent decline in revenue as a result of Beijing’s harsh regulatory assault on the country’s expansive digital sector.
For China’s tech behemoths like Tencent, regulatory uncertainty has decreased this year as a result of Chinese authorities’ desire to increase private sector confidence. But despite lifting COVID-19 limits in the latter part of last year, the world’s second-largest economy failed to take off.
(With inputs from Reuters)
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