Tencent’s earning’s call on Wednesday (August 15, 2018) has understandably caused a lot of debate.
The first drop in profits in 10 years is certainly something worthy of discussion and Tencent’s share price has clearly had a horrid time of things this year.
I also rate each issue based on its impact on the long-term health of the company.
It’s not every earnings call where we are treated to the spectacle of Tencent’s higher management having to explain the gory details of how government approval processes work.
I’m not surprised about the negativity surrounding the discovery that China’s government gaming regulations are even more byzantine, opaque and quite frankly impossible sometimes for even the biggest and most connected local companies to navigate through.
Yet the biggest companies are the ones best placed to be able to deal with it.