Tencent posted a slowdown in revenue growth during the fourth quarter of 2021 to a record low, and the Chinese tech giant blamed it on continuing to be affected by the Beijing government’s regulatory crackdown on the local tech sector, but despite this, the company posted an increase in quarter profits. Read more [China Keeps Scrutinize The Technology And Internet Sector].
Tencent raised 144.18 billion yuan ($22.62 billion), missing expectations of 147.6 billion yuan, as its revenue grew just 8% year on year, the slowest revenue growth since the company’s IPO in 2004, while looking at profits attributable to shareholders. It reached 94.96 billion yuan, well above expectations of 30.7 billion yuan, registering a growth of 60% year-on-year thanks to the gains made by the company from the sale of its assets.
For the full year of 2021, Tencent collected revenue of 560.12 billion yuan, a growth of 16% over 2020, which in turn represented the slowest annual growth rate in the company’s revenue, which analysts had expected to record 566.3 billion yuan.
Tencent, which has lost nearly $470 billion in market value since its peak in early 2021, has faced a number of turmoil and regulatory crackdowns by China on sectors as diverse as gaming and education, but the government announced last week that regulatory scrutiny is close to being over. its end. Read more [China’s Censorship Crackdown Reaches Video Games], [Chinese Stocks Rebound In The United States].
Online gaming is Tencent’s largest revenue source, but this division has faced many difficulties. Domestic gaming revenue rose only 1% to 29.6 billion yuan, prompting Tencent to focus on its overseas markets, as its global gaming revenue came during the quarter ending December. At 13.2 billion yuan, representing a 34% year-on-year growth, the Chinese giant has recently struck deals to expand its video game business. Read more [Tencent Acquires Britain’s Sumo for $1.3 Billion].