Tencent Wins Its First Gaming License Since China Froze Approval

Author: Anusuya Lahiri | November 17, 2022 02:20pm

Chinese gaming giant granted publishing licenses to 70 online games, including titles belonging to Tencent Holding Ltd (OTC:TCEHY), NetEase, Inc (NASDAQ: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.