Tencent Wins Its First Gaming License Since China Froze Approval

  • Chinese gaming giant granted publishing licenses to 70 online games, including titles belonging to Tencent Holding Ltd TCEHYNetEase, Inc NTES, and other developers, Reuters reports.
  • Tencent bagged its first commercial game license in a year and a half for an action game titled "Metal Slug: Awakening," the list published by the National Press and Public Administration showed.
  • Unlike in most other countries, video games need approvals from regulators before a release in China, which is also the largest gaming market. 
  • When Beijing cracked down on the gaming industry last August, it initiated a nine-month freeze on the license approval process.
  • NetEase, China's second-largest gaming company behind Tencent, also received a license this month for a role-playing game titled "Journey to the West: Return," its second license since the freeze was lifted in April after securing one in September.
  • A Tencent subsidiary also received a license in September, but it was for an educational game with no monetization.
  • Tencent reported a revenue drop for the second straight quarter as China's economic slowdown and regulatory crackdown hit its ad and gaming businesses.
  • Revenue fell 2% to 140.1 billion yuan ($19.8 billion), below the consensus of 141.4 billion yuan.
  • Net income came in at 39.9 billion yuan, above the 25.2 billion yuan estimate.
  • Price Action: TCEHY shares traded higher by 5.22% at $38.93 on the last check Thursday.
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