Tencent's shares down as China declines new game

Logo of Tencent is displayed at a news conference in Hong Kong China

Tencent said it would try to reinvigorate its mobile game revenue growth by extracting more value from existing popular titles, launching more role-playing games, and publishing more of its China-developed games internationally. Regulators have also been concerned about violence and gambling in some games, according to one person.

China's billion-strong population loves to game which is why it comes as no surprise China is the world's largest gaming market valued at $37.9 billion. Tencent responded by creating Wangzhe Rongyao, localized for the West as Honor of Kings (a mobile 5v5 MOBA) in 2015.

They could choose to continue playing but there would be no guarantee the service would continue, it said.

Lau said that interest accounted for a "low teens" percentage of revenue at its "others" business category which totaled 17.5 billion yuan in the June quarter, with the centralized deposit ratio raised to 52 percent in July from 42 percent in April. The National Radio and Television Administration has not granted licences for about four months, while the Ministry of Culture and Tourism has made game registration procedures more stringent, the people said.

A crackdown by the Chinese government on online content has also spilled over to gaming, with the industry accused of fostering addiction.

Shares of Tencent fell 3.6 per cent to HK$336 in Hong Kong before earnings were announced.

Tencent is part of a group of companies that have dominated the Internet in China.

Jury could begin deliberations in Manafort trial today
Gates, Manafort's former business partner, testified last week that he and Manafort did in fact commit bank and tax fraud. If found guilty on all charges, he could face eight to 10 years in prison, according to sentencing expert Justin Paperny.

Tencent has added controls to how much young people can spend on its games and limited play time for those under 12, after People's Daily previous year compared Honour of Kings to "poison".

Company president Martin Lau said "the biggest issue" before Tencent could return to rapid revenue growth was to gain regulatory approval to start charging for its PlayerUnknowns' Battlegrounds (PUBG) video game in China, while confirming a sector-wide freeze for new game approvals in the world's largest gaming market due to a government restructuring. "The only problem that we have is that one of our biggest games, PUBG Mobile, is not monetizing".

All this has been undercutting Tencent's chief source of income. Mobile gaming revenue jumped 19% year-over-year, making for a sequential decline of 19%.

Still, Mr Yang of Blue Lotus voiced confidence the company would eventually begin getting government approvals again.

"For us this is a medium-to-longer-term holding with a history of good investment", he said.

Riot had brought these concerns to Tencent, but Tencent instead changed the game enough to sell as a standalone product with no similarities to League and became the most popular smartphone game in China by the end of 2017.

Related News:

  • USA  report identifies more than 1000 victims of priest abuse

    USA report identifies more than 1000 victims of priest abuse

    The report that's close to 900 pages long names more than 300 priests across six of the eight Catholic dioceses in the state. Bishop Ronald Gainer of the Harrisburg Diocese also issued an apology on behalf of the religious community.
    Yemenis hold funeral for children killed in Saudi airstrike

    Yemenis hold funeral for children killed in Saudi airstrike

    Mourners shouted slogans against Saudi Arabia and its ally and key arms supplier, the United States. People carried pictures of those killed as Houthi forces managed the crowd attending the funeral.
    Vimeo Removes Infowars Content as CNN Continues Blacklist Crusade

    Vimeo Removes Infowars Content as CNN Continues Blacklist Crusade

    The company said it removed Jones' InfoWars videos from it's platform for violating their rules, according to Business Insider . InfoWars pushed back against the ban, saying Vimeo had joined "the anti free speech gulag".
  • Kante comfortable with surprise new Chelsea role

    Kante comfortable with surprise new Chelsea role

    The Blues are now adapting to life under new boss Sarri following his appointment as the club's new manager back in July after the sacking of Antonio Conte .
    Samsung Galaxy Note 9

    Samsung Galaxy Note 9

    Koh made these remarks while speaking to journalists at a press conference after the announcement of the Note 9 last week. That's pretty impressive, especially since the S Pen does take up a pretty large amount of space in the Galaxy Note 9 .
    Cars plunge in Italian highway bridge collapse; 20 killed

    Cars plunge in Italian highway bridge collapse; 20 killed

    Police say at least 35 people were killed when dozens of vehicles fell 45m (148ft) from the Morandi bridge during bad weather. The collapsed Morandi Bridge is seen in the Italian port city of Genoa on August 14, 2018.
  • Caspian Sea states sign landmark convention

    Caspian Sea states sign landmark convention

    A draft of the agreement viewed by RFE/RL suggested the parties would agree at Aktau to the Caspian's status as a "sea". The Caspian Sea has several different species of sturgeon, the fish that yields the highly prized delicacy caviar.
    Fernando Alonso retires from Formula 1

    Fernando Alonso retires from Formula 1

    While he won't race in F1 next year, Alonso is unlikely to retire, saying that "new, exciting challenges are around the corner". The 37-year-old McLaren driver won championships racing for Renault in 2005 and 2006.
    Koepka: From injury to two major wins | Sports , Other Sports

    Koepka: From injury to two major wins | Sports , Other Sports

    Woods struggled through the two opening rounds at Pebble Beach as he carded a 74 and 72 to head into the weekend four over par. But if his powers of recovery from that grim scenario were remarkable then so, too, were his escapology feats in St Louis .
  • Monsanto Roundup lawsuit: Jury awards $289 million to cancer patient

    Monsanto Roundup lawsuit: Jury awards $289 million to cancer patient

    Glyphosate, which is most commonly sold under the name Roundup , is a wildly popular herbicide manufactured by Monsanto. The products of the USA agrochemical company will instead become fully-integrated into Bayer's own marketing portfolio.
    Youngest American Woman To Receive Full Face Transplant, One Year Post-Op

    Youngest American Woman To Receive Full Face Transplant, One Year Post-Op

    She was raised by her grandmother, Sandra Bennington, since she was four-years-old and adopted by her at the age of 11. "When my parents helped explain everything to me, I was very excited to get a face again and to have function again".
    Air quality alert issued for northwest Montana

    Air quality alert issued for northwest Montana

    This improvement will continue on Wednesday, and we should be back to good air quality by Thursday and Friday. Pay attention to the heat indoors and follow guidance in the section below if it's too hot.


Most liked

Turkish Erdogan’s Spokesman expects Lira recovery to continue
The decision to impose new tariffs came a day after Erdogan said Turkey would boycott USA electronic goods, singling out iPhones . For one more time, Erdogan called on Turks to convert USA dollars into lira in order to "maintain the dignity" of the currency .

Born Mehreen Faruqi becomes first Muslim woman senator in Australia
And in her Junkee article, she said that with "increasing regularity" politicians were using "race-baiting as an avenue to votes". Ms Aly told Parliament she was proud of the response from all sides of politics against Mr Anning's speech.

India to launch first manned space mission by 2022, says Narendra Modi
He said PM Modi's announcement was a big kickstart and as a whole the nation " s science and technology sector would benefit. Sivan said ISRO has to set up necessary infrastructural facilities like the control centres for the proposed manned mission.

Turkey doubles tariffs on some U.S. imports; Turkish lira rallies
Kalin called on the United States to respect legal process in Turkey in reference to the American pastor's continued detention. Its drop of as much as 18% on Friday hit European and USA stocks as investors fretted about banks' exposure to Turkey .

Marcelo couldn't hold back his smirk at Sergio Ramos' Jurgen Klopp jibe
And now his latest response has included a couple digs taken at Klopp. "I have given my opinion on the matter". Real Madrid CF defender Sergio Ramos is mercilessly trolling Liverpool FC boss Jürgen Klopp.

Real Madrid's Sergio Ramos plays down Cristiano Ronaldo 'family' comments
Ahead of the UEFA Super Cup clash between Real Madrid and Atletico Madrid , Sports Mole looks at Gareth Bale's previous record against La Rojiblancos.

Akshay Kumar's Film Reviewed By Virender Sehwag: 'Sold On Gold'
In the first video, Akshay , dressed as a traffic cop, pulls over a auto which drives into a "No Entry" lane. Being a brand ambassador of Honda two-wheelers, he also promoted road safety at the Auto Expo 2018.

China has prevented 'great tragedy' in Xinjiang, state-run paper says
Beijing has long denied the existence of such camps, and has made no comment on the latest allegations. It said they were poorly fed, and reports of torture were widespread.

Rodgers: Boyata was fit to play
Croatian forward Marko Livaja's strike early in the second half left Celtic needing two unanswered goals to progress. Boyata told Belgian website DH.be: 'When I hear I've refused to play since I came back from vacation, it's wrong.

A simple misunderstanding between Trump and Erdogan may have tanked Turkey's economy
That helped ease tensions in financial markets, with the Turkish lira stabilizing somewhat near record lows. Turkey refused to release an American pastor who has been in detention in Turkey for almost two years now.

Tragic: Pregnant Former Reality Star Found Dead On NYC Sidewalk
McHenry first posted a boomerang of a chessboard at The Frederick Hotel in Tribeca, before she moved to the Soho Grand Hotel. Why does she look so bomb? EJNYC lasted for one season E! and featured EJ and a slew of close friends in Manhattan.

Meghan Markle's Father Thomas Reportedly 'Lied' to Prince Harry Over Paparazzi Claims
When news broke he had staged the pictures for money, Mr Markle said he suffered a heart attack and was rushed to hospital. During his first TV interview, Thomas said he apologized to both Harry and Meghan for his actions.

Indians' Leonys Martin battling serious infection
Those toxins did damage to his internal organs and the functioning of those organs was compromised, and it was severe. On Friday, Francona said, "If you believe in saying prayers and things like that, keep him in your thoughts".

I don't react to trolls: Anushka on her picture with Indian team
As the trailer looks promising, the actors talked about everything from film to trolls during the media interaction. Actor Anushka Sharma has hit the road to promote her next film Sui Dhaaga , which also stars Varun Dhawan .

Sarah Sanders Holds White House Briefing Amid Trump-Omarosa Feud
The agreement Omarosa was asked to sign after she left the White Houses also included the Vice President Pence and his family. I wonder if she is recording some of the things that we've talked about as well", he told Fox News' "Fox & Friends".