Tencent Will Have to Wait a Little Longer for Its Comeback
- Net income dives 13% as it takes charges on investments
- The social media giant is fighting ByteDance and the downturn
This article is for subscribers only.
It’s getting harder to believe in Tencent Holdings Ltd.’s comeback.
The Chinese social media goliath’s profit plummeted 13% last quarter -- worse than the most pessimistic analyst anticipated -- after an economic downturn depressed advertising and prompted charges within its huge portfolio of investments. Marketers fled to nurse shrinking budgets. And costs jumped 21% as Tencent hoovered up pricey content to feed its Netflix-style service. Shares in Prosus NV, which groups largest shareholder Naspers Ltd.’s internet holdings, fell as much as 4%.