Tencent Sees A Decline In Q3 2022

The Chinese technology giant Tencent recently released its Q3 2022 financial results. Unfortunately, for the second straight quarter, the company shrank.

Tencent recorded $19.7 billion in revenues during the third quarter of this year, representing a 2% decline from the same period in 2021. According to Reuters, this also missed analysts’ average estimations which predicted the company would record over $19.98 billion in revenues during the quarter.

What’s most interesting about these financial results is the comparison between Tencent’s domestic and international games. Since the third quarter of last year, Tencent’s domestic gaming revenues have fallen every quarter. Meanwhile, international game revenues increased 9% quarter-over-quarter and 4% year-over-year.

That wasn’t the only news that recently came from Tencent. The organization also announced it would return capital to shareholders through a dividend distribution of the company’s $20.3 billion stake in the food delivery firm Meituan. Despite this change in strategy, Meituan said it will continue to maintain its business relationship with Tencent even after the divestment concludes.

According to sources that spoke to Reuters, Tencent has been reducing its holdings in portfolio companies in part to “appease” Chinese regulators. Additionally, those sources said that Tencent is hoping to record large profits on those bets.

(All information was provided by TechNode and Yahoo! Finance)

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