Tencent’s revenue inched up after two quarters of contractions, fuelling hopes that Beijing will again allow the world’s largest internet arena to thrive. Revenue rose to 144.95 billion yuan for the three months ended December, matching analyst expectations. Tencent’s key advertising division returned to year-on-year growth in the quarter, reflecting improving demand.
China‘s video-games regulator has approved a further 27 imported titles, down from the 44 it approved in December 2022. Tencent and NetEase each had one minor imported title approved in the latest round. This supports our view that China’s video-game giants will in future need to become more self-reliant in generating intellectual property as barriers to foreign gaming companies increase. The news also highlights regulators’ shift toward favoring smaller studios.