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China's Tencent second-quarter profit falls 2 percent, lags estimates

China's Tencent second-quarter profit falls 2 percent, lags estimates
FILE PHOTO: Visitors use their smartphones underneath the logo of Tencent at the Global Mobile Internet Conference in Beijing May 6, 2014. REUTERS/Kim Kyung-Hoon   -   Copyright  Kim Kyung Hoon(Reuters)
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HONGKONG (Reuters) – Chinese technology giant Tencent Holdings Ltd on Wednesday reported a surprise 2 percent fall in second-quarter net profit, lagging analyst estimates, due to slower growth in mobile gaming and a decline in PC games.

China’s largest social media and gaming firm said April-June profit fell to 17.87 billion yuan (2 billion pounds), compared with the 19.67 billion yuan average of 12 analyst estimates compiled by Thomson Reuters.

Revenue rose 30 percent to 73.68 billion yuan (8.4 billion pounds), lagging 16 analysts’ average estimate of 77.5 billion yuan (8.8 billion pounds). That represented the slowest quarterly revenue growth since the third quarter of 2015.

Tencent is the most valuable Asia-listed company with a market value of $407.6 billion as at Wednesday’s close. Its shares have been volatile this year amid fear of a slowdown in its core businesses.

(Reporting by Sijia Jiang; Editing by Christopher Cushing)

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