Tencent announced first quarter 2019 profits of RMB 27.9 billion ($4 billion), posting 16% growth year on year driven by strong earnings from the company’s fintech and cloud businesses. However, revenue growth was the slowest on record as the titan struggles to recoup losses from increased gaming regulations in China.

Tencent grew its revenue 16% year on year to RMB 85.5 billion in the first quarter. RMB 21.8 billion came from fintech and other businesses including payment services and cloud computing, which posted strong 44% year-on-year growth.

Fintech and cloud revenue momentum helped offset a disastrous period for games due to increased regulatory oversight. The company released only one new mobile title—Perfect World Mobile—in the first quarter. Smartphone gaming revenue fell 2% year on year as a result, to RMB 21.1 billion, though it rose 11% sequentially, showing the catastrophic effects of the government’s crackdown on new gaming licenses.

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Bailey Hu

Bailey Hu is based in China’s hardware capital, Shenzhen. Her interests include local maker culture, grassroots innovation and how tech shapes society, as well as vice versa.