- Tencent Holdings Ltd TCEHY reported third-quarter FY21 revenue growth of 13% year-on-year to 142.4 billion yuan ($22.3 billion), missing the consensus of 145.4 billion yuan.
- Revenues from VAS increased by 8% Y/Y to 75.2 billion yuan, and Online Advertising increased by 5% Y/Y to 22.5 billion yuan.
- Revenues from FinTech and Business Services increased by 30% Y/Y to 43.3 billion yuan.
- The slowdown was due to the Chinese tech crackdown on businesses like gaming, advertising, and extending up to fintech, education, and online entertainment, Bloomberg reports.
- The growth decelerated for the sixth consecutive quarter and reached the slowest pace since Tencent went public in 2004.
- China's deadliest blows were July's tutoring purge that decimated a key source of ad revenue and a cap on kids' gaming time in August. The regulators also refrained from approving any new gaming releases since July.
- Tencent's net income of 39.5 billion yuan ($6.1 billion), up 3% Y/Y, missed the consensus of 32.6 billion yuan. The EPS was 4.074 yuan.
- Tencent made a deeper foray into the enterprise software and advanced technologies following the year-long crackdown on the consumer internet arena.
- Tencent pledged $3 billion worth of resources over the next three years to its cloud business partners and showcased its first self-made chips for use cases like search and video-transcoding.
- For now, Tencent's enduring hits like Honor of Kings continue to be its biggest gaming cash cows. Fully-owned Riot Games Inc may offer the most significant potential, the report adds.
- Riot's League of Legends mobile game finally debuted in China last month. The franchise's e-sports tournament and new anime series drew hundreds of millions of views for Tencent and its affiliates over the past weekend.
- Price Action: TCEHY shares closed higher by 0.08% at $59.85 on Tuesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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