Tencent Loses $207B Value, Profit Slumps
Chinese tech giant, Tencent, has shed over $207 billion (US$150 billion) in market value since January, with a further $15 billion wiped on Tuesday, after Chinese regulators demanded it remove ‘Monster Hunter: World’ [PC] just days after debut.
The news come amidst intensifying trade tensions between China and the US, coupled with Tencent’s first profit decline in over a decade.
On Wednesday, Tencent announced a 2% [YoY] quarterly drop in net income – its first decline since 2005.
For the second quarter, net profit notched 17.9 billion yuan ($US.7 billion), with revenue below analyst expectations at 73.7 billion yuan.
According to The Washington Post Chinese regulatory changes have left Tencent unable to make money from two mobile versions of its hugely popular ‘PlayerUnknown’s Battlegrounds‘ (PUBG).
Regulator re-structuring has also impacted China’s broader gaming industry, with core components not monetisable.
Analysts claim Tencent’s major Chinese rival, ‘Overwatch‘ operator NetEase, is also set to face regulatory implications.
Chinese authorities have made headlines in recent months for stepping up censorship of entertainment (e.g. violence) which does not meet the values of the Communist party.
Earlier this week, Chinese regulators pulled Tencent’s operating license for ‘Monster Hunter: World’ [PC], which reportedly received over a million pre-orders.
Tencent’s PC gaming business has notched a 8% quarterly decline, with commentators hoping Monster Hunt would revitalise the division.