The Strategist

Tencent's revenue declines for Q3



11/17/2022 - 02:44



Tencent Holdings announced on Wednesday that it would pay a dividend on its $20.3 billion investment in the food delivery company Meituan. In response to the slowing Chinese economy and regulatory changes, Tencent also revealed its second straight quarter of declining sales.



Chinwag via flickr
Chinwag via flickr
958.12 million Meituan shares, or around 90.9% of the Class B common shares it owns in Meituan, would be transferred, according to Tencent.

17 percent of Meituan are owned by Tencent. In order to please domestic regulators and make money off an eight-year investment, the corporation reportedly planned to sell all or the majority of its ownership in the Chinese app in August, according to Reuters. Tencent’s executive at the time claimed that this was "untrue."

Beijing's stringent rules on the tech sector and the country's deteriorating economic situation are the main reasons why the company is still having trouble.

Tencent reported on Wednesday that its quarterly sales decreased by 2% to 140 billion yuan ($19.8 billion), from 142.3 billion yuan a year earlier.

Refinitiv estimates that analysts expected revenue of 141.6 billion yuan on average.

Since coming public in 2004, Tencent had reported double-digit growth in almost every quarterly reporting period. However, since pressure on the Chinese IT industry started to build in late 2020, Tencent's growth has slowed.

source: news.cn




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