Chris Yunker
The Chinese IT corporation's net profit rose 65 percent year-on-year to 47.77 billion yuan ($7.42 billion). Analysts polled by Refinitiv expected this figure to be around 35.5 billion yuan. Revenue rose 25% to ¥135.3 billion, just above forecasts.
Tencent's successful reporting came at a time when pressure from Chinese regulators on the company is growing. They have already fined Alibaba $2.75 billion and ordered it to restructure its business, as well as requiring 13 IT corporations in the country to make changes to their financial services business. Tencent is on that list. Regulators deemed their services risky and in violation of the country's antitrust laws.
Last month, Reuters reported that Chinese antitrust regulators were preparing to fine Tencent more than 10 billion yuan, as well as requiring the company to give up exclusive music rights and sell some of its music assets. However, the company has not yet officially announced the fine or the regulator's demands.
source: reuters.com
Tencent's successful reporting came at a time when pressure from Chinese regulators on the company is growing. They have already fined Alibaba $2.75 billion and ordered it to restructure its business, as well as requiring 13 IT corporations in the country to make changes to their financial services business. Tencent is on that list. Regulators deemed their services risky and in violation of the country's antitrust laws.
Last month, Reuters reported that Chinese antitrust regulators were preparing to fine Tencent more than 10 billion yuan, as well as requiring the company to give up exclusive music rights and sell some of its music assets. However, the company has not yet officially announced the fine or the regulator's demands.
source: reuters.com
