Tencent Missed Forecast for its Third Quarter in Seven Years
China’s biggest social network and gaming company Tencent Holdings reported that they missed its third quarter net income forecasts as the company’s revenue grew at its slowest rate in seven years with its lucrative mobile gaming business have dropped down.
The company mobile gaming sales, one of its biggest drivers of revenue in the previous quarter fell down 2.6 billion yuan in three months and dropped to 3 billion yuan in September. The results were worse that the company have forecasted and confirmed that investors are now worrying that the cool down in sales from mobile gaming might impact on to the US$ 154 billion company results.
While net income have risen 46 percent or 5.66 billion yuan in third quarter it was well below the estimated of 6.1 billion yuan. The company earnings were held back due to the slowest revenue in seven years due to its active global users of WeChat, Tencent’s biggest mobile app in which saw users increase by 6.8 percent from the previous quarter or 468 million monthly users which the company say its slowest growth quarterly since Tencent started released figures.