Tencent sees first profit fall after nearly 13 years

Naspers shares, which owns a 31 percent stake in Tencent, slid 8 percent after the results were announced on Wednesday. Photo: Reuters

Naspers shares, which owns a 31 percent stake in Tencent, slid 8 percent after the results were announced on Wednesday. Photo: Reuters

Published Aug 16, 2018

Share

INTERNATIONAL -  Shares of Chinese technology giant Tencent Holdings were set to slide 4.8 percent on Thursday after it reported its first quarterly profit fall in nearly 13 years and said it had no clarity on when it may get China approval for its most popular game.

Tencent’s shares, which have dropped 13.5 percent so far this week, were set to open at HK$320 (R589)

Shares of South Africa’s Naspers, which owns a 31 percent stake in Tencent, slid 8 percent after the results were announced on Wednesday.

On Wednesday,  Tencent said that it had “no clarity” on when it may get approval to start charging for its most popular game.

Company president Martin Lau said “the biggest issue” before Tencent could return to rapid revenue growth was to gain regulatory approval to start charging for its PlayerUnknowns’ Battlegrounds (PUBG) video game in China, while confirming a sector-wide freeze for new game approvals in the world’s largest gaming market due to a government restructuring.

- REUTERS

Related Topics: