Tencent profit surges 60% amid Big Tech crackdown

Tencent’s quarterly profit has leapt 60% amid the country’s widespread crackdown on Big Tech and its slowest revenue growth on record.

Beijing’s grip on its domestic technology sector has tightened over the past 12 months, with Alibaba and Tencent receiving the brunt of a number of antitrust fines and probes.

Tencent’s revenue of 560.12 billion yuan was 16% up year-on-year, slightly down from analysts expectations of 566.3 billion yuan.

The Big Tech giant has lost around $470 billion in market value since its peak early last year, thanks to clampdown.

Online games is Tencent’s largest revenue driver, however Chinese regulators cut the amount of time children under 18 could play online games for.

Chinese authorities also haven’t approved the launch of any new games in the country since July last year.

Video games in the country must first be approved by regulators before they are released and monetised.

Tencent also generates a large proportion of its revenue from advertising business, which has also been hurt by Beijing’s clampdown on after-school education companies which are popular in the country.

Sluggish consumer spend has also hurt Chinese tech companies.

Click here to sign up to Charged‘s free daily email newsletter



Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.