Chinese Gaming Giants Tencent Reports First Ever Decline In Revenue
The makers of PUBG Mobile have announced that it has reportedly suffered heavy losses in the last fiscal year due to Covid restrictions.
- Tencent recently posted its first on-year quarterly fiscal report.
- The report states that its revenues have decreased by 3% compared to last year.
- Stricter laws tied to gaming and various Covid regulations have caused this change.
The Chinese gaming company has reportedly suffered its first-ever decline in revenue this year. After posting its first-ever quarterly report for annual earnings, the company was disappointed with the figures.
The report stated that the company earned approximately 134.6 billion Yuan ($20 billion) in the first quarter of 2022. However, the company then reported a 3% decline in revenue earned in the second quarter of 2022. Here, it dipped to 134.03 billion Yuan ($19.78 billion).
Tencent has claimed that this is happening due to the stricter protocols that are being implemented by the Chinese government. The country has seen a resurgence in Covid cases in the last few months.
However, the Chinese company has now faced a big issue ever since India banned PUBG Mobile, the biggest online game in India. The microtransactions present in this game also provide a sizable proportion of Tencent’s income, being its favorite cash cow.
The profits of the firm also declined significantly in this quarter. According to statements published by Tencent, they expected profits of 25.28 million Yuan. However, it dropped to 18.62 million Yuan, a 526% decline.
Also, China passed a policy earlier this year preventing kids below 18 years of age from playing games for more than 3 hours a day.