Tencent, the tech conglomerate of China has said that their net income for the three-month period, which ended in July was $2.6 billion, having a decline of 2% compared to the similar period in the previous year. There was an increase in Revenue to $10.7 billion.
The Revenue target had fallen well short of what the experts had estimated. This was indeed a rare miss for an organization that has always been able to give a wow feeling to the investors by surpassing expectations of the market both for sales as well as for user growth on a routine basis.
Tencent mentioned that revenue generation from online games had a fall of 19% from the last quarter to $2.6 billion, a swing that they had attributed to a lack of sales from tactical games of the tournament that were popular along with the time at which the releases of the new game had taken place.
The organization that owns the messaging platform of WeChat, which has more than 1 billion users, has had problems in getting the approval from the regulators in China, to monetize some of their viral online games.
Share prices of Tencent had fallen by more than 3% on Tuesday after the regulators from China banned a game known as Monster Hunt World, out of which big sales were expected. The prices of Ten cent’s shares had dropped further 3.6% in Hong Kong on Wednesday before the release of the earnings.
In a notice to the players, the company had gone on to say that some content in the game does not meet up with the regulations that the regulators have put in place and due to which, the regulator of the Chinese Government has even received quite a large number of complaints from different quarters.
There is another game, called Honour of Kings, which has come up the regulator’s radar. The newspaper of a closely watched Communist Party had publicly rebuked Tencent last year for the game as they claimed that the game was behind causing addiction among young people.