TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentral TechCentral
    NEWSLETTER
    • News

      E.tv: ‘We know we must vacate broadband spectrum bands’

      29 June 2022

      E-commerce is killing shopping malls – but, curiously, not in South Africa

      29 June 2022

      Eskom warns recovery from strike chaos could take weeks

      29 June 2022

      Eskom offers workers 7% increase: sources

      29 June 2022

      Eskom employees returning to work

      29 June 2022
    • World

      Napster plots crypto comeback

      29 June 2022

      Pictures: Chinese spacecraft acquires images of entire planet of Mars

      29 June 2022

      Arm aims for leg-up in smartphone games with new chip tech

      29 June 2022

      Warnings of a final bitcoin ‘washout’

      29 June 2022

      Sony launches into PC gaming hardware

      29 June 2022
    • In-depth

      The great crypto crash: the fallout, and what happens next

      22 June 2022

      Goodbye, Internet Explorer – you really won’t be missed

      19 June 2022

      Oracle’s database dominance threatened by rise of cloud-first rivals

      13 June 2022

      Everything Apple announced at WWDC – in less than 500 words

      7 June 2022

      Sheryl Sandberg’s ad empire leaves a complicated legacy

      2 June 2022
    • Podcasts

      How your organisation can triage its information security risk

      22 June 2022

      Everything PC S01E06 – ‘Apple Silicon’

      15 June 2022

      The youth might just save us

      15 June 2022

      Everything PC S01E05 – ‘Nvidia: The Green Goblin’

      8 June 2022

      Everything PC S01E04 – ‘The story of Intel – part 2’

      1 June 2022
    • Opinion

      Has South Africa’s advertising industry lost its way?

      21 June 2022

      Rob Lith: What Icasa’s spectrum auction means for SA companies

      13 June 2022

      A proposed solution to crypto’s stablecoin problem

      19 May 2022

      From spectrum to roads, why fixing SA’s problems is an uphill battle

      19 April 2022

      How AI is being deployed in the fight against cybercriminals

      8 April 2022
    • Company Hubs
      • 1-grid
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Tarsus on Demand
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»Sections»Investment»Big profit miss at Tencent sends Naspers, Prosus tumbling

    Big profit miss at Tencent sends Naspers, Prosus tumbling

    Investment By Agency Staff13 November 2019
    Facebook Twitter LinkedIn WhatsApp Telegram Email
    Image: Chris Yunker

    Tencent posted quarterly earnings that missed the lowest analyst’s estimate after a weakening economy hurt advertisement revenue.

    Net income fell 13% to 20.38-billion yuan (US$2.9-billion) in the three months ended September. That compares to the 23.5-billion yuan average of estimates compiled by Bloomberg. Shares in Prosus, which holds largest shareholder Naspers’s Internet holdings, fell. Prosus was trading off 4.2% on lunchtime on Wednesday, while Naspers was own 2.8%.

    China’s economic slowdown is dousing revenue growth across Tencent’s platforms, dampening appetite for advertising among large brands as well as subscriptions to its video and music streaming services. Beijing’s decision to cap playing time for under-aged users is also prompting Tencent to spend more on producing AAA-rated mobile titles that appeal to a global audience, such as Call of Duty Mobile.

    Tencent owns stakes in some of the biggest US game studios and publishers, including the outfits that created household names Fortnite

    “Video ads and subscribers remain under pressure,” Jerry Liu, a Hong Kong-based analyst at UBS, said in a report. “Investors are pricing in lower structural growth in gaming, pressure in advertising growth due to macro and competition, and more regulatory headwinds in online content.”

    Tencent’s sprawling gaming empire had helped offset some of the weakness in advertising growth, a consequence of a slowing Chinese economy as well as competition from the likes of ByteDance. Tencent owns stakes in some of the biggest US game studios and publishers, including the outfits that created household names Fortnite, League of Legends and World of Warcraft. The Chinese company is now counting on converting popular PC content for smartphones to rekindle growth. The pipeline for such content stretches into 2022, the company says.

    Revenue rose 21% to 97.2-billion yuan. Shares of Tencent were mostly unchanged in Hong Kong before earnings were announced. The stock has increased 4.3% this year, compared to a 36% rise for New York-listed Alibaba Group.  — Reported by Lulu Yilun Chen, (c) 2019 Bloomberg LP

    Naspers Prosus Tencent top
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticleMichael Jordaan’s Bank Zero readies for launch
    Next Article Apple launches MacBook Pro with bigger screen, new keyboard

    Related Posts

    E.tv: ‘We know we must vacate broadband spectrum bands’

    29 June 2022

    E-commerce is killing shopping malls – but, curiously, not in South Africa

    29 June 2022

    Eskom warns recovery from strike chaos could take weeks

    29 June 2022
    Add A Comment

    Comments are closed.

    Promoted

    Think herding cats is tricky? Try herding a cloud

    29 June 2022

    How your business can help hybrid workers effectively

    28 June 2022

    Hands off our satellite spectrum!

    27 June 2022
    Opinion

    Has South Africa’s advertising industry lost its way?

    21 June 2022

    Rob Lith: What Icasa’s spectrum auction means for SA companies

    13 June 2022

    A proposed solution to crypto’s stablecoin problem

    19 May 2022

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2022 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.