Tencent shares slump down 2.7% after below-than-expected earnings

127484

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).

The information and recommendations contained in this analytical document are published strictly for information purposes and are not considered as an offer to buy or sell the trading tools mentioned above and are not intended to motivate to perform certain transactions
Something went wrong
Message: