China's Tencent reports first-ever drop in revenue as economy sinks

Revenue from online games decreased both at home and abroad by 1%

Tencent said it had shut some unprofitable businesses and promised a return to growth even if the economy stayed weak, after government clampdowns on its gaming business and COVID-19 lockdowns drove its first-ever quarterly sales fall.

The contraction marks a nadir for the gaming giant and owner of the WeChat messaging platform which has reported double digit growth almost every quarter since it went public in 2004, as Beijing's crackdown on big tech companies that began in late 2020 puts the brakes on its expansion.

Chinese regulators in April lifted a nine-month freeze on gaming licences, but are yet to issue a