Chinese tech and entertainment giant Tencent posted slight losses for its games business in the last quarter.
In an investor presentation, the company reported a 1.4% drop in revenue from its international games division, which brought in RMB10.7 billion ($1.57 billion) for the three months ending on June 30th.
Tencent says this is likely due to the end of COVID lockdown restrictions. The company points to PUBG Mobile and Brawl Stars showing declining revenue, while describing Riot Games’ Valorant performance as “robust”. Tencent also calls V Rising as a source of additional income; the game has sold over 2.5 million copies to date.
Meanwhile, domestic games hit 31.8 billion RMB ($4.67 billion), a 1.1% year-on-year decline that Tencent attributes to post-lockdown life, as well as fewer big launches and new restrictions put in place to prevent children from playing games for so long.
“During the second quarter, we actively exited non-core businesses, tightened our marketing spend and reduced operating expenses, which allowed us to sequentially increase our non-IFRS earnings, despite revenue conditions. difficult,” said Tencent CEO and Chairman Ma Huateng.
“Going forward, we will focus on improving the efficiency of our business and launching new revenue initiatives, including in-app ads in our popular video accounts, while continuing to drive innovation through R&D. We generate approximately half of our revenue from FinTech and Business Services as well as online advertising that directly contribute to and benefit from overall economic activity, which should position us for revenue growth as the Chinese economy is growing.