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China's Tencent posts weak revenue growth, plans to double buybacks
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China's Tencent posts weak revenue growth, plans to double buybacks
Mar 20, 2024 2:06 AM

HONG KONG (Reuters) -China's Tencent Holdings ( TCTZF ) posted a 7% rise in fourth-quarter revenue on Wednesday, trailing analysts' expectations, as China's economic slowdown takes a toll, and said it was expecting to at least double its share buybacks this year.

The world's largest video game company and operator of the WeChat messaging platform reported revenue of 155.19 billion yuan ($21.56 billion) for the three months ended Dec. 31. That compared with the 157.2 billion yuan average of 23 analyst estimates compiled by LSEG.

For all of last year, Tencent's ( TCTZF ) revenue rose 10% to 609 billion yuan, which trails expectations at 612.2 billion yuan.

Still, this marks a year of recovery for Tencent ( TCTZF ), which reported its first annual revenue decline in 2022 as it was hit by Beijing's sweeping crackdown on the tech sector. By comparison, it saw revenue growth in every quarter last year.

Tencent's ( TCTZF ) core gaming business suffered a notable slowdown in the fourth quarter. Gaming revenue in China declined 3% to 27 billion yuan, while international gaming revenue increased only 1% to 13.9 billion yuan.

Revenue from online ads rose 21% to 29.8 billion yuan as the Shenzhen-based giant continues to expand its ad distribution capability.

Revenue from fintech and business services grew 15% to 54.5 billion yuan as the firm continued its expansion in those areas.

The company also said intends to at least double the size of its share repurchases from HK$49 billion in 2023 to over HK$100 billion ($12.78 billion) in 2024.

($1 = 7.1995 Chinese yuan renminbi)

($1 = 7.8230 Hong Kong dollars)

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