BEIJING: China’s Tencent reported a quarterly drop in net income Wednesday, amid an apparent regulatory squeeze on the tech giant’s online gaming business.
Total revenues for the quarter rose by 30 percent year-on-year to 73.68 billion yuan ($10.65 billion) while online games revenue increased 6 percent to 25.20 billion yuan, according to a filing with the Hong Kong Stock Exchange.
But profit was down 2 percent from the previous year, a result Bloomberg reported was the first drop for the firm in over a decade.
Gaming revenue dropped 12 percent from the first quarter, which the company said reflected a user shift into non-monetised games, the timing of new game launches and “weaker seasonality”.
Bloomberg News reported Wednesday that China had stopped approving any new mobile games as part of a wider shake-up of the market.
Quoting unnamed sources, Bloomberg said approvals for online, console and mobile games have been stalled for months, leaving developers stranded.