Tencent Holdings (TCEHY) reported its Q3 results with revenues continuing to be in a decline for the second straight quarter. In the third quarter, Tencent reported revenues of 140.1 billion yuan or $19.7 billion, down 2% year-over-year and falling short of Street estimates of 141.6 billion yuan.
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However, the Chinese technology and entertainment conglomerate’s net profit was up 1% year-over-year to 39.9 billion yuan, or approximately $5.6 billion.
The company also announced that it was shedding most of its 17% stake in Meituan, a Chinese food delivery app. Tencent will transfer 958.12 million shares in Meituan valued at around $20.3 billion in the form of a special dividend to Tencent shareholders.
Tencent’s videogame and online advertising business continued to struggle in Q3 as revenues from Tencent’s videogame business dropped 4% year-over-year to around 42.9 billion yuan. Revenues from the online advertising business fell 5% year-over-year.
Moreover, the company also slashed its employee headcount by 2% at the end of Q3 to 108,836.
