Tencent revenue falls due to Covid-19 and strict regulations

The video game vertical was not the only one affected within the technology company, as online advertising revenue fell 18% compared to the previous year. However, the Fintech and Business Services segment, which includes its mobile payment service WeChat Pay and its cloud computing business, rose 1% year-on-year to $6.224 billion.

“Fintech revenue growth was slower relative to previous quarters as the resurgence of Covid-19 temporarily impacted merchant payment activities in April and May,” the company explained, but they expect business to pick up. in line with the Chinese economy.

For the next few quarters, the company will implement a “cost control” strategy to reduce expenses and return profit growth, even if revenues do not increase.

Separately, the company also reported its first drop in workforce in nearly a decade. According to their figures, at the end of June, the company employed 4.7% fewer workers than at the end of March. This is the first cut in staff since 2014.