Tencent reports first profit decrease in 10 years

Tencent Holdings Ltd reported its first decrease in adjusted profit in 10 years in its latest quarterly report on Wednesday, as it emphasized investment in frontier technologies and socially beneficial endeavors.

For the three months ending in September, the company saw a 2 percent drop in profit based on non-IFRS adjustments, which exclude the likes of share-based compensation and merger and acquisition-related impacts.

Revenue for the period surged 13 percent to 142.4 billion yuan ($22 billion).

"We are proactively embracing the new regulatory environment which we believe should contribute to a more sustainable development path for the industry," chairman and CEO Ma Huateng said in a press release.

He said the company has been investing actively in key strategic areas, frontier technologies, along with 'making new commitments in common prosperity initiatives'.

Domestic games revenue grew 5 percent year-on-year, while international games posted a 20 percent surge.

Advertising revenue growth also slowed to 5 percent, with Tencent expecting weak momentum to continue in the months to come, citing macro challenges and regulations affecting certain key advertising sectors.

The company has set aside dedicated funds to social responsibility programs like increasing incomes for the poor, improving medical assistance, promoting rural economic efficiency and subsidizing education programs.