Tencent cuts costs, explores new revenue sources

Tech giant downsizes workforce, focuses on Video Accounts as novel growth point

Tencent Holdings Ltd has taken cost-cutting measures such as downsizing its workforce and controlling growth in staff costs in the April-June period, and will explore new sources of revenue by speeding up the commercialization push in its short video platform Video Accounts, the company's top executive said.

"During the second quarter, we actively exited noncore businesses, tightened our marketing spending, and trimmed operating expenses. This enabled us to subsequently increase our non-IFRS(international financial reporting standards) earnings, despite difficult revenue conditions," said Ma Huateng, chairman and CEO of Tencent.

The Shenzhen, Guangdong province-based company reported on Wednesday its revenue came in at 134.03 billion yuan ($19.73 billion) for the quarter ending in June, a decline of 3 percent year-on-year. Its profit attributable to equity holders for the quarter was 28.1 billion yuan, down 17 percent from a year ago.