• Loading stock data...
Friday, July 11, 2025

Riot Games Owner Posts First-Ever Quarterly Revenue Decline

  • Tencent reported $19.77 billion in second-quarter revenue.
  • The quarter marked the company’s first-ever year-over-year revenue decline.
Tencent
Tencent

Tencent reported $19.77 billion in second-quarter revenue, a 3% decrease from the same period last year — the company’s first-ever year-over-year revenue decline.

In the Chinese tech conglomerate’s gaming division, revenue for domestic and international games both fell 1% year-over-year to a respective $4.7 billion and $1.6 billion, accounting for just under a third of Tencent’s total revenue.

Domestic games experienced “a smaller digestion period due to transitional issues,” according to Tencent, which include fewer game releases, lower user spending, and gaming regulations for minors.

  • In 2021, Chinese regulators created a rule to limit the amount of time minors could play video games to just three hours per week.
  • Between July 2021 and April 2022, regulators would not grant approval of new games — Tencent launched only three mobile games during Q2.

Meanwhile, international games are being affected by “a post-pandemic digestion period,” with gamers spending less time online as countries open back up.

Tencent owns or has stakes in Riot Games, Wake Up Interactive, Epic Games, Activision Blizzard, Roblox, and Discord, among others. Popular games including “League of Legends,” “PUBG,” and “Moonlight Blade Mobile” also experienced revenue declines during the quarter.

Matter of Time

While gaming regulations have slowed Tencent’s momentum, it shouldn’t be for long. 

Tencent president Martin Lau said the regulatory environment in the country is “progressing from rectification to normalization,” and the company expects to receive game licenses from regulators soon.

Linkedin
Whatsapp
Copy Link
Link Copied
Link Copied

What to Read

May 13, 2025; Cleveland, Ohio, USA; Indiana Pacers guard Bennedict Mathurin (00) drives to the basket between Cleveland Cavaliers guard Ty Jerome (2) and center Jarrett Allen (31) during the second half of game five of the second round for the 2025 NBA Playoffs at Rocket Arena.

Penn Continues to Fight Activist Investor While Admitting Struggles

The activist battle is heating up ahead of Penn’s shareholder meeting next month.
July 9, 2009; Auburn Hills, MI, USA; Detroit Pistons president Joe Dumars during the press conference to introduce their new head coach John Kuester at their practice facility.

Joe Dumars Leaving NBA League Office to Run Pelicans

Joe Dumars was the architect of the 2004 champion Pistons.
Mar 20, 2025; Providence, RI, USA; Arkansas Razorbacks forward Karter Knox (11) controls the ball against Kansas Jayhawks during the first half at Amica Mutual Pavilion.

Men’s March Madness Sets Opening-Day Viewership Record

CBS Sports and TNT Sports scored big with Arkansas–Kansas.

Mavericks Take Key Step Toward Potential New Casino, Arena in Irving

Mavericks CEO Rick Welts said the team wants to stay in Dallas.

Featured Today

Rimouski, QC - JUNE 1: Final Game of the 2025 Memorial Cup between the Medicine Hats Tigers and the London Knights on June 1, 2025, at the Colisée Financière Sun Life in Rimouski, Qc.

CHL Is Facing a ‘Pandora’s Box’ of Questions Amid NCAA Talent Departure

As players defect to college, the Canadian Hockey League won’t cede ground.
Jun 28, 2025; Arlington, Texas, USA; Seattle Mariners catcher Cal Raleigh (29) bats during the game between the Texas Rangers and the Seattle Mariners at Globe Life Field.
July 9, 2025

The Torpedo Bat Business Is Still Going Strong: ‘Here to Stay’

Demand for the oddly shaped bats has stayed strong across the sport.
July 6, 2025

American Celebs Want to Be Sports Owners. Soccer Is Where They Start

As U.S. team prices climb, investors set their sights abroad.
July 5, 2025

Baseball’s Celebrity Row: Behind MLB’s First-Pitch Ritual

Often planned, sometimes spontaneous, the ritual throw is baseball’s celebrity row.
Jonathan Mariner

Former MLB CFO Jumps to PE, Says Teams Are Undervalued

Mariner worked in Major League Baseball for 24 years.
March 20, 2025

Nike Struggles Continue, but Signs of Turnaround Appear

The embattled company beats tepid expectations in both revenue and earnings.
James Harden
April 24, 2025

Adidas Posts Big Profits in First Quarter Without Yeezy

Profits and sales are up after selling off remaining Yeezys last year.
Sponsored

Game On: Portfolio Players Stories, Brought to You by E*TRADE from Morgan Stanley

Dealmaker Jeffrey Kaplan maps the evolution of sports as an asset class
Oracle Park
March 18, 2025

S.F. Giants Selling Stake to Private Equity to Pay for Facility Upgrades

The team said the cash would not be used to grow payroll.
Aug 11, 2024; Paris, France; Medals are carried out on Louis Vuitton trays after the women's volleyball gold medal match during the Paris 2024 Olympic Summer Games at South Paris Arena
February 16, 2025

LVMH’s New Push: World’s Most Powerful Luxury Group Is Coming for Sports

LVMH is making long-term deals—and they’re not done.
February 14, 2025

DraftKings Turns First Full-Year Profit, Stock Up 47% in 2025

The company’s sports betting business continues to grow despite headwinds.
Billie Jean King
February 13, 2025

Billie Jean King: ‘Billionaires, Not Millionaires’ Are Fueling Women’s Sports Boom

Billie Jean King wants more women involved in team ownership, too.