Tencent Clocks 8% Revenue Growth In Q4; Looks To Focus On Core Businesses

Tencent Holdings Ltd TCEHY reported fourth-quarter FY21 revenue growth of 8% year-on-year to 144.2 billion yuan ($22.6 billion).
Revenues from VAS increased by 7% Y/Y to 71.9 billion yuan, and Online Advertising decreased by 13% Y/Y to 21.5 billion yuan.
Revenues from FinTech and Business Services increased by 25% Y/Y to 48 billion yuan.
On a non-IFRS basis, the operating margin contracted 500 bps to 23%. Tencent's net income attributable to equity holders declined 25% Y/Y to 24.9 billion yuan ($3.9 billion). EPS was 2.55 yuan.
Tencent held $44.1 billion in cash and equivalents.
The board has recommended a final dividend of HK$1.60 per share for FY21.
Tencent focused on core businesses like international games, cloud services, and its WeChat messaging service, developing new games for its pipeline instead of scaling up buybacks like Alibaba Group Holding Ltd BABA, Bloomberg reports.
A year-and-half-long domestic crackdown on tech giants hampered Tencent's growth.
Regulators have restricted game approvals since August 2021.
Tencent looked to benefit from new game launches and saw the advertising business resume growth in late 2022.
Price Action: TCEHY shares closed higher by 5.42% at $50.61 on Tuesday.

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