China’s largest video game and social media company cut nearly 5,500 employees from its payroll in the second quarter amid a slowing economy.
Tencent has its
“During the second quarter, we actively parted ways with non-core businesses, tightened our marketing spend and reduced operating expenses, enabling us to sequentially increase our non-IFRS revenues despite challenging revenue conditions,” said Pony Ma Huateng, Founder and CEO from Tencent.
Net income reached 18 billion yuan in the period, down 56 percent from a year ago, excluding analyst estimates of 25 billion yuan.
Reports have also surfaced that Tencent is considering selling some or all of its 17 percent stake
However, the company denied the news during Wednesday’s earnings call.
Video game sales domestically and globally both declined.
The company attributed the poor performance to “fewer major game releases, lower user spend, and the implementation of minor protections.”
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