Why Tencent's Profit Missed Estimates

Tencent's growth is driven by gaming, but challenges like Apple's guidelines have impacted results. Despite a 46% rise in net income, revenue growth was the slowest in seven years, disappointing investors. Gaming is crucial, making up over half of Tencent's sales, helping it compete with Alibaba and Baidu. China's online gaming market is expected to grow significantly, and Tencent aims to capture this through mobile and new products in WeChat and QQ.

What were the main challenges Tencent faced in its gaming division?

• Decline in global gaming market

• Lack of interest in mobile gaming

• Focus on improving game quality and Apple's guidelines

• Competition from new gaming companies

How did Tencent's financial performance fare in the reported quarter?

• Net income rose by 46%

• Revenue decreased by 28%

• Revenue rose by 46%

• Net income decreased by 46%

What was the investor reaction to Tencent's financial results?

• Investors were pleased with the results

• Tencent's ADRs increased significantly

• Investors were disappointed, leading to a slump in ADRs

• There was no significant reaction from investors

What percentage of Tencent's sales is attributed to global gaming?

• Less than a quarter

• About a third

• More than half

• Almost all

What strategy is Tencent employing to capture the growing online gaming market in China?

• Reducing investment in gaming

• Expanding into international markets

• Focusing on console gaming

• Focusing on mobile gaming and integrating new products into WeChat and QQ