Tencent Reports Q2 Revenue Decline Amid Post-Pandemic Adjustment

Tencent, the Chinese tech giant, has released its financial report for the second quarter, revealing a decline in revenue across both its international and domestic gaming divisions. Key highlights include: - Total revenue of RMB 134.0 billion ($20 billion), marking a 3% year-over-year decrease - A profit of RMB 19.2 billion ($3 billion), representing a 55% decrease from the previous year - International Games revenue stood at RMB 10.7 billion ($1.6 billion), down 1% year-over-year - Domestic Games revenue was RMB 31.8 billion ($4.7 billion), a 1% decrease from the previous year The company attributes the decline in international games revenue to an industry-wide "post-pandemic digestion period" as players resume outdoor activities. Although titles like PUBG Mobile and Brawl Stars experienced revenue declines, Valorant saw revenue growth and achieved a record-high monthly active user count. V Rising, released in Early Access in May, generated "incremental revenues" with 2 million copies sold. Tencent's domestic games division also faced a decline due to the post-pandemic transition, with fewer AAA title releases, reduced consumer spending, and ongoing restrictions on gaming by minors. Honor of Kings and Peacekeeper Elite were the top-earning games for the quarter. Recently, the company announced a partnership with Logitech to develop a handheld cloud gaming console, set to launch later this year.