BEIJING, Nov 12 (Reuters): Tencent Holdings Ltd, China's biggest social network and gaming firm, missed third-quarter net income forecasts as revenues grew at their slowest rate in seven years and sales from its lucrative mobile gaming business dropped off.
Mobile gaming sales, the biggest driver of revenue growth in the previous quarter, fell to 2.6 billion yuan in the three months ended September from 3 billion in the second quarter. Tencent's results were worse than management had forecast, confirming investor worries that cooling sales from mobile gaming would be a drag on the $154-billion company's results.
Tencent stocks lost as much as 13 per cent of their value after company executives warned in August that mobile gaming revenue growth could be flat during the second half of the year. Tencent's value-added services (VAS) business, which includes mobile gaming, is its cash cow, making up over four-fifths of total revenues.
Net income rose 46.4 per cent to 5.66 billion yuan ($923.98 million) in the third quarter, well below estimates of 6.173 billion yuan, according to a Thomson Reuters SmartEstimate poll of 10 analysts.
Earnings were held back by the slowest revenue growth in seven years. Revenues were up 27.5 per cent to 19.81 billion yuan, versus forecasts of 20.57 billion based on a poll of 12 analysts, it said in a filing to the Hong Kong stock exchange.
China\\\'s Tencent profit misses forecast as revenue growth slows
FE Team | Published: November 13, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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