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Tencent Suffer is the first Suffer to ever Drop in Quarterly Revenue

Net profit attributable to equity holders dropped 56% to 18.6 billion yuan, which is below the estimate of analysts of 25 billion yuan. GAMING

China reduced the key lending rates on Monday to boost demand after data showed a slowdown in July. This suggests that China is the second largest economy in the world is struggling to recover from the second quarter's hit to its growth caused by Covid restrictions.

Alibaba (BABA) Alibaba (BABA), an online retailer, reported earlier this month that it had reported flat revenue growth in the quarter for the first times in its history.

Tencent has been cutting down its stakes in portfolio companies partly in order to satisfy Chinese regulators and partly to record the huge profits from those bets according to sources.

Since February 2021 the time when the Shenzhen-based giant was at its peak it has lost nearly 60% of its market value. This was due to Beijing's regulatory crackdown on large internet companies. The $373 billion company still is China's most valuable.

Revenue from online games, Tencent's biggest profit driver, decreased both in China and abroad, with each declining by 1%. Tencent has yet to get a new gaming license from Chinese regulators following a temporary halted approvals.

Its social network services reported a 1% increase in revenue, as WeChat earned more from its video content.

"In the short term this could be its most significant growth driver," Shawn Yang, manager director of Blue Lotus Capital Advisor said about WeChat video revenue.

Tencent reported 18.6 Billion Yuan ($2.74 Billion) in advertising revenue during the second quarter. This was 18% lower than expected. However, Yang said that advertisers remain cautious with their budgets. Yang also stated that this was not as bad of a result as some analysts had predicted.