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Companies

Tencent under pressure to find new games strategy

Search for revenue beyond core business likely to affect profitability

HONG KONG -- The phenomenal success of mobile games once helped China's Tencent Holdings land on the list of the world's 10 most valuable brands, alongside Apple and Facebook. But as analysts are waiting for Tencent's earnings report this week, many believe the company's greatest asset could become its greatest burden.

In August, the Hong Kong-listed social media and gaming company reported its first quarterly profit dip in 13 years, triggered by Beijing's suspension on the approval of new games. For those who expect to see a recovery in Tencent's third-quarter financial earnings -- scheduled to be released on Wednesday -- the experience is likely to be another disappointing moment, analysts warn.

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