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Tencent sheds $78bn in value due to rising costs

Tencent sheds $78bn in value due to rising costs

Despite soaring to an all-time high in profits in January, Tencent has come back down with $79 billion shed in value.

That is according to Bloomberg, who reports that the Chinese tech and entertainment giant's quarterly financial report on Wednesday will show that rising costs and continued investments have strained profits.

Analysts are said to be concerned that the company is not yet able to bring in enough money from its mobile games to offset a decline in the PC unit, which is its most profitable platform.

As such, gross margin in the latest period is expected to dip below 47 per cent for the first time since 2003.

Short-term pain, long-term gain

Tencent has been active in investing in the various games ventures from online to streaming services.

PocketGamer.biz has the full story


Editor - PC Games Insider

Alex Calvin launched PCGamesInsider.biz in August 2017 and has been its editor since. Prior to this, he was deputy editor at UK based games trade paper MCV and content editor for marketing and events for London Games Festival 2017. His work has also appeared in Eurogamer, The Observer, Kotaku UK, Esquire UK and Develop.

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