Tencent’s Revenue Slowed to Weakest Pace in Nearly Two Decades

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Tencent’s Revenue Slowed to Weakest Pace in Nearly Two Decades
25 Mar 2022
6 min read

News Synopsis

China's social media and video game giant Tencent Holdings Ltd. has slowed its fourth-quarter earnings to its weakest pace in nearly 20 years as long-standing crackdowns on regulations and sluggish consumption in China's high-tech sector weighed on sales. 

The largest videogame developer has said that the revenue for October to December period rose 7.9% to 144.19 billion yuan. It marked the worst top-line growth ever since it went public in 2004, missing the expectations of analysts polled by FactSet.

The chief executive of Tencent Pony Ma has said that 2021 was a challenging year for the company as it sought to adapt to a tougher regulatory environment and structural changes to China’s internet industry.

Over the past year, Beijing has enacted a set of regulations aimed at reducing the impact of the largest Internet companies and intensifying competition in the consumer Internet space. Tencent was unaffected by the heavy fines imposed on its rival Alibaba Group Holding Ltd. and Meituan were largely spared, but Shenzhen-based tech companies were hit by new restrictions in the gaming sector.

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