The Chinese internet giant Tencent posted a considerably lower profit in the fourth quarter of last year compared to a year earlier. The group is struggling with the disappointing performance of its games division due to the stricter policy from Beijing.
The Chinese authorities want more control over “cultural policy” and recently started fighting “inappropriate and vulgar” games. As a result, a number of Tencent games are still awaiting approval, which has delayed launch. revenue against due to declining consumer confidence. In order to maintain growth, Tencent increased spending on, for example, digital services.
Below the line at Tencent, a net profit of 14.2 billion yuan remained, equivalent to around 1.9 billion euros. That is more than 30 percent less than in the last quarter of 2017. Revenues increased by 28 percent to nearly 85 billion yuan.
Oliver I. Kjeldsen has a corporate finance and extensive expertise in company audit. He grants us amazing insights on taxation, international affairs and friendly advice on nearly any topic of interest. His email is oliver.kjeldsen@economicinform.com
