Tencent reports drop in profit for Q1

Chinese tech heavyweight Tencent Holdings Ltd reported on Wednesday its total revenue came in at 135.5 billion yuan ($21.3 billion) in the first quarter of this year, versus 135.3 billion yuan in the same quarter last year.

Profit attributable to equity holders for the quarter was 25.5 billion yuan, down 23 percent year-on-year, marking a decline for three consecutive quarters.

"During the challenging first quarter of 2022, we implemented cost control initiatives and rationalized certain non-core businesses, which would enable us to achieve a more optimized cost structure going forward," said Pony Ma, chairman and CEO of Tencent.

The company has continued to invest in strategic growth areas, including enterprise software, video accounts and international games, Ma said.

Revenue from fintech and business services rose 10 percent on a yearly basis to 42.8 billion yuan in the first quarter. Moreover, Tencent has increased investment in research and development as R&D expenditure stood at 15.4 billion yuan, an increase of 36 percent year-on-year.

Revenue from domestic games decreased by 1 percent to 33.0 billion yuan, partly due to restrictions on playtime for minors.