Tencent shares slump down 2.7% after below-than-expected earnings

14.11.2019 - Petr Mazaylo
Tencent shares slump down 2.7% after below-than-expected earnings

Tencent shares slump down 2.7% after below-than-expected earnings

Shares of Tencent Holdings went down 2.7% on Thursday after the company posted earnings that were below analysts’ estimates.

The Hong Kong-listed index heavyweight’s net income also plunged 13% in the third quarter. The lowered profit was blamed on global economic turndown, tricky political consideration, and high maintenance costs related to its Netflix-style services.

Earlier in the year, the company’s outlook was positive after the government retracted a nine-month freeze on game approvals.  

“The PC gaming and media advertising business was under pressure,” said David Dai, an analyst with Berstein, in a Bloomberg report. “Fintech and cloud are doing well but we need to wait a bit longer to see them contribute more significant profit.”

Tencent Holdings Ltd’s shares last traded down 2.7% at HK$318.60 by 12:09 AM ET (04:09 GMT).

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.ai or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue

Help with deposit?