Tencent profit and revenue growth disappointed analysts and investors – Kommersant
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Chinese telecommunications giant Tencent introduced financial statements for the second quarter of 2023, from which it follows that the company’s net profit grew by 41% compared to last year, to 26.17 billion yuan ($3.6 billion). Tencent’s revenue grew by 11% for the second quarter in a row, this time amounting to 149.2 billion yuan ($20.6 billion).
Despite the good results of all divisions of Tencent, the company’s shares fell more than 1% in trading on the Hong Kong Stock Exchange on Wednesday. The fact is that key financial indicators turned out to be worse than analysts’ forecasts. Thus, the consensus forecast of analysts for revenue was 151.7 billion yuan, and for net profit – 33.4 billion.
The results shown indicate that Tencent is starting to recover from a very unfortunate 2022 for itself, when the entire technology sector in China was under serious pressure from the authorities of the country, and gamers began to spend noticeably less time in games compared to the height of the COVID-19 pandemic and massive covid restrictions. But investors fear that the recovery of Tencent, like the rest of the Chinese economy, will not be as fast as analysts had hoped.
Earlier in the second quarter of the year reported Alibaba group. Tencent’s main competitor managed to return to the growth of key indicators after more than a year of problems related to the investigations of the authorities against the company and its founder Jack Ma. So, Alibaba’s revenue grew by 14%, to 234.2 billion yuan ($32.3 billion), and net profit – by about 50%, to 34.3 billion yuan ($4.7 billion). Both indicators were better than analysts’ forecasts.
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