Tencent loses $15 billion in market value after "Monster Hunter"

Tencent loses $15 billion in market value after

Total revenues for the quarter rose by 30 percent year-on-year to 73.68 billion yuan ($10.65 billion) while online games revenue increased 6 percent to 25.20 billion yuan, according to a filing with the Hong Kong Stock Exchange.

"We don't have visibility on when exactly the official approval will start yet", said Tencent President Martin Lau on a conference call with investors, according to Bloomberg (paywall). China insists on foreign companies working with a Chinese partner to sell their products, meaning many United States and European publishers work with companies such as Tencent to sell games. WeGame said in a statement that regulators had received a large number of complaints about the game, which has sold over eight million copies worldwide.

"The key here is, not only PUBG, but no games are able to get licences now", a person from Tencent told Reuters on Tuesday on condition of anonymity due to the sensitivity of the matter. Tencent's hugely popular mobile game, Honor of Kings, also fell victim to regulations a year ago, over concerns that teens were spending too much time on it.

Tencent said it would try to reinvigorate its mobile game revenue growth by extracting more value from existing popular titles, launching more role-playing games, and publishing more of its China-developed games internationally, such as Arena of Valor and PUBG Mobile. Last year, Tencent proactively imposed restrictions on how long younger players can play a game per session.

Morton said he remained bullish on Tencent shares and that regulatory risk in China versus the rest of the global gaming market has always been there.

The whole sector has been rattled as gaming companies from online giant Tencent Holdings Ltd.to small developers await approvals.

Trump attacks Turkey, vows to pay "nothing" for US pastor's release
But the sell-off has increased the cost of servicing that debt, particularly for companies whose revenues are exclusively in lira. Turkey and its firms face repayments of almost $3.8 billion on foreign currency bonds in October, Societe General has calculated.

Tencent has been shifting its business away from the gaming industry. This has happened the first time that Tencent is in loss after a decade or so.

Chinese regulators have frozen approval of game licenses, Bloomberg reported on August 15, citing people familiar with the matter.

"We consider the disruption to the game business to be temporary and primarily due to licensing suspension amid regulatory uncertainties; the business remains structurally intact, in our view", Daiwa Capital markets analyst John Choi said.

Gaming companies were often asked to alter their games before they can be released in the country.

Even if the regulators resume approvals immediately, the typical process takes about two to three months, signaling potential weakness in the third quarter for companies like Tencent. Those include the desktop versions of successful mobile titles Battlegrounds and Fortnite, per Bloomberg. China ordered it to shut down Monster Hunter: World from its PC downloads service just days after its debut, while the country's watchdogs are said to have frozen approval of game licenses. Lau said this showed the regulators' goodwill.

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