Tencent’s sentiments dropped by 3% in Q2 2022 compared to Q1 2022, following the negativity around financial metrics, regulations, advertisements, FinTech and rising staff costs amid COVID-19 lockdowns. However, the company remains optimistic about controlling costs, gaming business, video accounts and cybersecurity, according to GlobalData, a leading data and analytics company.

Rinaldo Pereira, Business Fundamentals Analyst at GlobalData, comments: “GlobalData’s Company Filings Analytics database identified negativity around ‘Revenue’ and ‘Profit’ as driver of the sentiment decline in Q2 2022. ‘Costs’ around headcounts, and the impact of COVID-19 lockdowns on FinTech revenue growth were also discussed over its recent earnings call.”

An analysis of GlobalData’s Company Filing Analytics database reveals that Tencent discussed rising staff costs due to acquired subsidiaries and hinted at positivity around controlling costs, with comments on slowing headcount growth.

Pereira continues: “Following its struggles with mounting costs amidst regulatory troubles, Tencent seems to be hinting at layoffs. Prolonged regulations and COVID-19 issues forced the company to look at cost control strategies. One example is its comments on mitigating costs within its video segment.”

With the company focusing on optimizing cost strategy, GlobalData’s Company Filing Analytics database also identified a significant drop in mentions of investments and related keywords from over 50 in Q2 2021 to 19 in Q2 2022.

Pereira concludes: “‘Games’ was among the top keywords mentioned around investment in 2022. Despite cost issues, Tencent discussed about investments around SaaS, video accounts and gaming during 2022. That said, the tech giant is investing carefully while also looking at divestments whenever necessary.”