Tencent said that US President Trump's executive order banning its WeChat instant messaging service could have a minimal impact on its business if it only applies outside of China.
In the earnings call following the announcement of Tencent's financial results, Tencent management highlighted the difference between using the WeChat service outside of China and within China. Trump's executive order explicitly mentions the former.
The vast majority of Tencent's revenue comes from within China. The impact on Tencent's business could be fairly minimal if its instant messaging service within China is not disrupted.
The executive order focuses on WeChat in the US rather than its other businesses in the country, Tencent Chief Financial Officer John Lo said on a conference call with investors, adding that he couldn't speculate further.ย
Tencent released financial results showing its fastest revenue growth in two years and profits that topped analysts' expectations.Sales rose 29 percent to 114.9 billion yuan ($16.5 billion) in the three months to June, while net profit rose to 33.1 billion yuan.
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