Chinese tech giant Tencent posted its lowest ever recorded revenue growth, citing Beijing’s wide-reaching regulatory crackdown as pushing the company to move resources away from game development and also an advertising market slowdown, reports the Financial Times.
The group’s third-quarter revenue climbed 8% from a year ago to RMB 144.2 billion ($22.6 billion), the weakest pace since Tencent listed in 2004.
Beijing introduced a barrage of regulations last year, including new rules restricting children to only about three hours of gaming a week. While Tencent has said its reliance on younger people was limited, James Mitchell, Tencent’s chief strategy officer, said on Wednesday the process of complying, and restricting the access of minors to its games, had hit revenue growth. “Some of our game teams were focused on implementing [regulations] . . . rather than creating new content for games,” Mitchell said.
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