China’s tech giant Tencent sees shock drop in profits

China’s largest social media and gaming firm has revealed a shock drop in profits following slow growth and a crackdown by regulators.

Tencent said second quarter profits fell to about £2billion, behind analyst estimates of £2.2billion. 

It was the first decline in earnings posted by the company in nearly 13 years. Sales rose 30 per cent to £8.4billion in the latest quarter, also behind analyst predictions, of £8.8billion.

Profits fall: Tencent said second quarter profits fell to about £2billion

It became Asia’s first listed firm to pass a $500billion valuation last year but since then shares have sunk, valuing it yesterday at around $460billion. 

Tencent shares closed 3.6 per cent down in Hong Kong last night.