(Bloomberg) -- Meituan Dianping reported a smaller than expected 13% slide in revenue during China’s nationwide Covid-19 lockdown, warning the fallout from the pandemic will continue to affect the world’s largest meal delivery business over the rest of 2020.Sales fell 12.6% to 16.8 billion yuan ($2.4 billion) in the three months ended March, compared with the 15.6 billion yuan average of analysts’ estimates. It also reported a lower-than-projected net loss of 1.58 billion yuan. Shares of Meituan rose 6% in Hong Kong before earnings were announced. It’s gained roughly $40 billion in market value since China began to return to normal in mid-March.Backed by Tencent Holdings Ltd., Meituan’s sprawling services from food delivery to in-store dining and hotel booking were among the most vulnerable during China’s Covid-19 shutdowns.“Our food delivery business was facing significant challenges on both the supply side and demand side for the first quarter of 2020,” the company said in its exchange filing. “Moving on to the remaining of 2020, we expect that factors including the ongoing pandemic precautions, consumers’ insufficient confidence in offline consumption activities and the risk of merchants’ closure would continue to have a potential impact on our business performance.”Before the outbreak, the internet services giant had made an aggressive push into arenas from online travel to ride-hailing. While the business that encompasses hotels and travel posted a 31% plunge in March-quarter revenue, Meituan’s much smaller new initiatives segment -- which includes bike- and car-hailing -- actually grew sales 4.9%, aided by the launch of a new grocery delivery service.While Meituan is expanding offerings to sell things like handsets and farm produce, rivals including Ant Financial and SF Express, both backed by Alibaba Group Holding Ltd., are elbowing their way into Meituan’s core takeout business. Alibaba’s food-delivery arm Ele.me is also engaging in a subsidy battle with the startup for market leadership.Longer term, Meituan will also have to grapple with China’s worsening economy, which may further dent consumer spending.What Bloomberg Intelligence SaysMeituan may signal some business recovery in 2Q as China reopens its economy, but it could take some time for consumer confidence to fully recover, especially for its travel business.Ver-Sern Ling and Tiffany Tam, analystsClick here for research.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.?2020 Bloomberg L.P.
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(Bloomberg) -- ByteDance Ltd.’s millennial sensation TikTok and its Chinese twin app Douyin ranked top in the world among mobile apps for April revenue, according to Sensor Tower data that excludes games and advertising.Focusing narrowly on in-app purchases, TikTok and Douyin’s numbers for the month showed a tenfold increase to $78 million, propelling them ahead of more established names like YouTube, Tinder and Netflix, which rely more on existing subscriptions.The Chinese market, served by Douyin, contributed 86.6% of the app income, followed by the U.S. with 8.2%. In either version of the video-streaming app filled with dance videos and memes, users can purchase virtual currency to spend on supporting their favorite creators.Like many social media platforms, ByteDance is testing the waters of online commerce, even while it continues to rely on advertising as its main source of income. Emarketer expects that more than 75 million US social-network users aged 14 and older will make at least one purchase from a social channel in 2020, up 17.3% from 2019.In 2020’s first quarter, TikTok and Douyin generated 315 million downloads globally, up from 187 million a year earlier, said Sensor Tower, noting the positive influence of Covid-19 on the video-sharing apps’ popularity.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.?2020 Bloomberg L.P.
Verizon’s offer that saw the AirPods Pro on sale for $220 may be over, but Amazon has the next best thing.
The Best Buy Memorial Day Sale is now live, and we have links to each segment, along with our choices of the best deals on offer.
(Bloomberg) -- Tencent Holdings Ltd. is buying a 20% stake in Japan’s Marvelous Inc., giving the smaller company capital to develop its game franchises and bolstering the content Tencent itself can offer users.China’s biggest game company, through affiliate Image Frame Investment, will spend about 7 billion yen ($65 million) to buy stock in the company, the Japanese games maker said in a statement. Marvelous will sell 8.62 million new shares for 576 yen apiece, while shareholders Amuse Capital and Nakayama Hayao will sell 2.83 million and 708,600 shares respectively at the same price.Marvelous plans to use the money to build out its existing game franchises and launch new ones over the next three years. Its current titles include Story of Seasons and Deamon X Machina.Tencent has been one of China’s most aggressive overseas investors, backing everything from technology startups to coffee-and-donuts chain Tim Hortons Inc. Among game developers, Tencent has taken stakes in Epic Games Inc., the North Carolina-based company behind Fortnite, and South Korean studio Bluehole, which fostered PlayerUnknown’s Battlegrounds.“Tencent’s reason for the investment is probably to learn how to make console games from Japanese companies, one of the last frontiers for the Chinese tech company’s game business,” said Hideki Yasuda, an analyst at Ace Research Institute. “The investment will help Marvelous ride through the period of global economic uncertainty, and release more of its domestically-popular titles to the Western market.”Tencent and Marvelous have already been working together, with the Chinese company making a game with the Story of Seasons intellectual property. Marvelous said it decided to expand the relationship so it could invest more in its games, launch new initiatives and expand globally.Marvelous said it expects Covid-19 and fifth-generation wireless services will serve as catalysts to bring changes to the game industry. Gamers will demand more from each title, requiring companies to step up their efforts.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.?2020 Bloomberg L.P.