Tencent's Q3 Revenue Takes A Hit Due To Domestic Slowdown And Regulatory Crackdown

Tencent Holding Ltd TCEHY reported a revenue drop for the second straight quarter as China's economic slowdown and regulatory crackdown hit its ad and gaming businesses.
Revenue fell 2% to 140.1 billion yuan ($19.8 billion), below the consensus of 141.4 billion yuan, Bloomberg reports.
Net income came in at 39.9 billion yuan, above the 25.2 billion yuan estimate.
Also Read: Tencent Clocks First Quarterly Revenue Decline As China's Tech Crackdown, Macro Slowdown Weighs
Tencent pledged to give away the majority of its shares in meal delivery giant Meituan MPNGF MPNGY as it continues to whittle away at its extensive holdings across China's internet industry.
Tencent, which had announced plans to pare its stake in e-commerce giant JD.com, Inc JD, will give out more than 958 million Class B stock in Meituan as a special dividend to existing shareholders.
Tighter marketing budgets worldwide and growing competition from TikTok-owner ByteDance Ltd. are cutting digital advertising profits. In cloud computing, revenue fell this year as it worked to cut loss-making contracts.
Tencent co-developed a new mobile game with Capcom Co. for the Japanese studio's popular Monster Hunter franchise.
Tencent has failed to win a gaming license since China lifted its suspension.
Tencent has begun a new round of job cuts targeted at its video streaming, gaming, and cloud businesses.
The layoffs affected three out of Tencent's six business divisions, namely, platform and content (PCG), which comprises its video and news platforms, its gaming-focused interactive entertainment department (IEG), and cloud and smart industries group (CSIG).
Price Actions: TCEHY shares closed higher by 10.78% at $37 on Tuesday.

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