Tencent shares slump down 2.7% after below-than-expected earnings
Shares of Tencent Holdings went down 2.7% on Thursday after the company posted earnings that were below analysts’ estimates.
The Hong Kong-listed index heavyweight’s net income also plunged 13% in the third quarter. The lowered profit was blamed on global economic turndown, tricky political consideration, and high maintenance costs related to its Netflix-style services.
Earlier in the year, the company’s outlook was positive after the government retracted a nine-month freeze on game approvals.
“The PC gaming and media advertising business was under pressure,” said David Dai, an analyst with Berstein, in a Bloomberg report. “Fintech and cloud are doing well but we need to wait a bit longer to see them contribute more significant profit.”
Tencent Holdings Ltd’s shares last traded down 2.7% at HK$318.60 by 12:09 AM ET (04:09 GMT).
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