Investing.com - Shares of the Hong Kong-listed index heavyweight Tencent Holdings were down more than 2.5% on Thursday in Asia after the company posted earnings below analysts’ estimates.
The company’s net income plunged 13% in the third quarter, according to a statement released on Wednesday. Global economic downturn, tricky political consideration and higher cost related to its Netflix-style service were cited as the reasons for the lowered profit.
The company’s outlook appeared to be more positive earlier this year after the government removed 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 (HK:0700)’s shares last traded at HK$318.60 by 12:09 AM ET (04:09 GMT), down 2.7%.