(Yicai Global) Nov. 17 -- Shares of Tencent Holdings fell, ending a four-day advance, after the Chinese tech giant’s revenue dropped for a second quarter in a row because of lower income from video gaming and online advertising.

Tencent [HKG: 0700] closed the day down 0.8 percent at HKD292 (USD37.32), after swinging between a 1.7 percent gain and a 4.5 percent decline. That ended the stock’s 27 percent advance since Nov. 11 and means it is still down 36 percent this year.

Revenue fell 2 percent to CNY140.1 billion (USD19.7 billion) in the three months ended Sept. 30, as income from value-added services fell 3 percent to CNY72.7 billion, the Shenzhen-based company said in a financial report released yesterday. Revenue rose 4.5 percent from the second quarter.

Tencent’s income from overseas gaming rose 3 percent to CNY11.7 billion, but that from China dropped 7 percent to CNY31.2 billion, as transitional industry challenges resulted in lower-paying user counts. Meanwhile, revenue from online advertising slid 5 percent to CNY21.5 billion. Fintech and business services revenue climbed 4 percent to CNY44.8 billion.

Net profit rose 1 percent to CNY39.9 billion in the three months, the report showed.

“During the third quarter, we started to benefit from the adjustments that we have made to reposition ourselves for a new industry paradigm,” founder, Chairman and Chief Executive Pony Ma said.

Video game license issues will finally be resolved, and new permits will be issued in the near future, easing headwinds in the gaming sector, the company said on its earnings conference call. New licensing was suspended for about eight months after China tightened rules on the gaming sector in August last year.

Social network revenue fell 2 percent to CNY29.8 billion, as revenues from the video account livestreaming service and music subscription service rose, but revenues from the music and game-related livestreaming subscription service and video subscription service dropped.

The number of combined monthly active users of Weixin and its global version WeChat was 1.3 billion at the end of September, up 3.7 percent over the same period last year. QQ's MAU remained stable at 574.4 million.

Tencent's capital expenditures plunged 66 percent to CNY2.4 billion in the period.

Editor: Futura Costaglione