Shenzhen-based Tencent, China’s largest provider of messaging services and mobile gaming, has reported Q2 numbers that disappointed analysts, sending the stock down in Hong Kong trading today.
The company said yesterday that net profit jumped 35% in the second quarter, while revenues rose 21 per cent to RMB88.8 billion yuan. However, that was below analysts’ consensus estimate of RMB93.4 billion, and the stock dipped nearly 3% today, despite an overall recovery on the Hang Seng Index.
Tencent’s core gaming market has begun to pick up, and the company is adjusting its revenue structure as it searches for new growth engines, with online games gradually making up a relatively smaller share in its overall revenue. In Q2, the proportion of online game revenue fell to 30.7%, while fintech and enterprise services revenue rose to 26%, digital content revenue rose to 23.3%, and online advertising revenue rose to 18%.
“We accelerated our rate of innovation in games, successfully releasing new games in several different genres, introducing new modes within some of our key titles, and extending our season passes,” Chief Executive Ma Huateng said in written remarks.
What can we say, Pony? Investors are a much tougher crowd to please than gamers.