Revenue totalled CNY 135.5 billion in the quarter ended March, versus CNY 135.3
billion in the same quarter last year, and below an average estimate of CNY 141
billion from 16 analysts, according to Refinitiv.
Tencent, which makes much of its money by developing games
such as Honour of Kings and Call of Duty Mobile, said profit attributable to
equity holders of the company for the quarter also fell 51 percent. It marks
the biggest profit decline since the company went public in 2004, according to
Refinitiv data.
The slowing pace of growth tracks two previous quarters of softening sales. Tencent — China's most valuable company — has seen expansion opportunities clipped by a regulatory crackdown by Beijing to rein in the influence of large internet firms.
The Shenzhen-based tech giant has been impacted by user
spending on games normalising after a surge over the past two years. Meanwhile,
a COVID-19 resurgence in China has also dampened payment activities.
Last month, Tencent said it will shut down a service that
allowed Chinese gamers to access overseas platforms to play unapproved foreign
games, in a sign of tightening compliance as Chinese regulators more closely
scrutinize the industry.
The country's largest social and gaming firm said it will
update its games speed booster mobile and desktop apps to new versions on May
31 that would only support games operating in China. The new versions will no
longer allow users to access foreign games. © Reuters
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