Tencent Reports Low Revenue, Planning to Increase Buybacks

China’s Tencent Holdings posted a 7% rise in fourth-quarter revenue on Wednesday, trailing analysts’ expectations, as China’s economic slowdown takes a toll, and said it was expecting to at least double its share buybacks this year.

The world’s largest video game company and operator of the WeChat messaging platform reported revenue of 155.19 billion yuan ($21.56 billion) for the three months ended Dec. 31.

That compared with the 157.2 billion yuan average of 23 analyst estimates compiled by LSEG.

For all of last year, Tencent’s revenue rose 10% to 609 billion yuan, which trails expectations at 612.2 billion yuan.

Still, this marks a year of recovery for Tencent, which reported its first annual revenue decline in 2022 as it was hit by Beijing’s sweeping crackdown on the tech sector.

By comparison, it saw revenue growth in every quarter last year.

Tencent’s core gaming business suffered a notable slowdown in the fourth quarter. Gaming revenue in China declined 3% to 27 billion yuan, while international gaming revenue increased only 1% to 13.9 billion yuan.

Revenue from online ads rose 21% to 29.8 billion yuan as the Shenzhen-based giant continues to expand its ad distribution capability.

Revenue from fintech and business services grew 15% to 54.5 billion yuan as the firm continued its expansion in those areas.

The company also said that it intends to at least double the size of its share repurchases from HK$49 billion in 2023 to over HK$100 billion ($12.78 billion) in 2024.

Josh Alba
Josh Alba
Josh Alba stands at the forefront of contemporary business journalism, his words weaving narratives that illuminate the intricate workings of the corporate world. With a keen eye for detail and a penchant for uncovering the underlying stories behind financial trends, Josh has established himself as a trusted authority in business writing. Drawing from his wealth of experience and relentless pursuit of truth, Josh delivers insights that resonate with readers across industries.
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