Chinese internet giant Tencent ( OTCPK:TCEHY ) reported third-quarter results on Wednesday that missed expectations due to the slowing Chinese economy and regulatory crackdowns, with the company adding it would distribute its $20.3B stake in Meituan to shareholders as a dividend.
For the period ending September 30, Tencent ( OTCPK:TCEHY ) said its revenue fell 1.6% year-over-year to $19.8B (140.09RMB) and its adjusted EBITDA declined 1% over the same time frame to $6.86B (48.6RMB).
The company, which is in the midst of conducting a new round of layoffs, said its capital expenditures fell sharply to 2.4BRMB, down 66% year-over-year.
"During the third quarter, we started to benefit from the adjustments that we have made to reposition ourselves for a new industry paradigm," Tencent Chairman and CEO Ma Huateng said in a statement .
The CEO added that Tencent ( OTCPK:TCEHY ) started to put ads in its video accounts during the period and the continued execution of "cost efficiency initiatives which re-focused us on core activities and controlled our cost growth."
Free cash flow during the period was $3.9B or 27.6BRMB, up 15% year-over-year.
In addition to the financial results, Tencent ( OTCPK:TCEHY ) said it would give its $20.3B stake in Chinese food delivery company Meituan to shareholders. Tencent owns approximately 17% of the firm.
Tencent ( OTCPK:TCEHY ) sold off the vast majority of its stake in JD.com ( JD ) in December 2021. The company also owns stakes in a number of other companies, including Pinduoduo ( PDD ), Tesla ( TSLA ) and others.
Last month, Tencent Games ( OTCPK:TCEHY ) subsidiary Level Infinite collaborated with Swarmio Media ( OTCQB:SWMIF ) and Globe Telecom ( OTCPK:GTMEF ) to launch two exclusive gaming tournaments in the Philippines .
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Tencent Q3 hurt by weak Chinese economy, regulations; will give Meituan stake as dividend