, Columnist
Tencent's Social Conscience Hits Financial Reality
Trying to satisfy Beijing’s community-minded policies makes it difficult for companies to navigate a slowing economy
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Tencent Holdings Ltd. is doing its best to be a good corporate citizen. It’s helping traditional industries adapt to the modern world, exiting businesses that might make it anti-competitive, and reining in undesirable computer-game habits. Unfortunately, it’s also undertaking the one task China least needs right now: job cuts.
The Shenzhen-based games and social media company just turned in its second straight quarter of declining revenue. A 1.6% drop for the three months to Sept. 30 was worse than analysts had expected. Yet two other items dominated Wednesday’s earnings release.