Tencent's 3 Core Growth Engines Still Face Daunting Challenges
Chinese tech giant Tencent (OTC: TCEHY) recently posted its third-quarter earnings. Its revenue rose 21% annually to 97.24 billion yuan ($13.75 billion), but still missed estimates by about $100 million. Its net profit dropped 13% to 20.4 billion yuan ($2.97 billion), which also missed expectations by nearly $570 million.
On a non-GAAP basis -- which excludes stock-based compensation, gains and losses from investments, acquisitions and divestments, and other one-time adjustments -- Tencent's net profit rose 24% to 24.4 billion yuan ($3.45 billion).
Those results weren't awful, but they clearly indicated that the 21-year-old tech giant's core growth engines were losing momentum. Let's see why those three core business units -- video games, ads, and cloud and fintech -- are struggling to grow.
Source Fool.com
