Tencent is Hit for the first Time in its Quarterly Revenue Decline

The net profit attributable to equity holders decreased 56% to 18.6 million yuan, below the estimate of analysts of 25 billion.

China has cut its key lending rates on Monday to boost demand, as data showed a slowdown in July, indicating the world''s second-largest economy is struggling to overcome the impact of the second quarter on growth due to the strict Covid restrictions.

E-commerce giant Alibaba (BABA) reported this month that it had a flat quarterly revenue growth for the first time in its history.

Sources say that Tencent has reduced its stakes in portfolio companies partly for Chinese regulators to appease them and partly to book its large profits on these bets.

The Shenzhen-based giant has lost almost 60 percent of its market value since its peak in February 2021 following Beijing''s crackdown on regulation to rein in the influence of internet-based companies. The $373 billion company still holds the title of China''s most significant.
games

Revenue from online games, Tencent''s biggest source of profit, fell in China and abroad, each falling by one percent. Tencent has yet to receive a new gaming license from Chinese regulators after they temporarily stopped approvals.

The social network''s services reported a 1% increase in revenue. WeChat gained more money from its video content.

Shawn Yang, manager director at Blue Lotus Capital Advisor, said that "in the short term it could be its greatest growth driver," referring to WeChat revenue.

Tencent reported 18.6 Billion Yuan ($2.74 Billion) in advertising revenue in the second quarter. This was less than expected. However, Yang said that advertisers are cautious about their budgets. Yang also stated that this was not as bad of a result as some analysts had predicted.