Tencent 0700 04 (Oct 21 - Dec 25)

[winston]

vested

TENCENT's Overall Dismissal Scale Not as High as 30-50%: CN Media

TENCENT (00700.HK) has been shrinking its manpower in numerous business groups since the end of last year, with biggest layoffs in Cloud and Smart Industries Group and Platform and Content Group, and less magnitude or even non-action in Interactive Entertainment Group, Chinese media reported.

Earlier rumor had spiraled online that this round of dismissal may be in a scale as high as 30%-50%.

Yet later report said that the overall downsizing will not be such high, adding that the layoffs are primarily based on business adjustments, instead of ages.

Source: AAStocks Financial News

[winston]

vested

China weighs Tencent payments overhaul, new license requirement

Chinese authorities are considering requiring Tencent Holdings Ltd. to include WeChat Pay in a newly created financial holding company, part of an overhaul that may necessitate a new license for the ubiquitous mobile payments service.

Tencent needs to fold its banking, securities, insurance and credit-scoring services into a financial holding company that can be regulated like a traditional bank.

Ant’s estimated valuation has dropped to as low as US$63 billion from more than US$300 billion at its peak.

One certainty is that a financial holding company would mean additional capital requirements and tighter regulatory scrutiny.

Tencent’s fintech and business division - which includes cloud computing – is its fastest growth engine, contributing roughly 30% of its total sales, the biggest revenue source after gaming.

Source: Bloomberg

https://www.theedgesingapore.com/news/c ... equirement

[winston]

Tencent bows to the new paradigm amid slowest growth ever

Tencent (0700) saw its adjusted fourth-quarter net profit drop 25 percent year-on-year to 24.9 billion yuan (HK$30.6 billion), while adjusted profit last year inched up only 1 percent to 123.8 billion yuan.

Revenue for the whole year jumped 16 percent to 560 billion yuan, also at its slowest-ever pace.

Income from value-added services last year rose by 10 percent to 291.6 billion yuan, of which domestic games revenue went up 6 percent to 128.8 billion yuan.

In the December quarter, online advertising brought the firm only 21.5 billion yuan in revenue, 13 percent less than a year ago.

Source: Bloomberg

https://www.thestandard.com.hk/section- ... rowth-ever

[winston]

not vested

Tencent posts slower quarterly revenue growth as profit rises 60 per cent on back of one-off gain from divesting JD.com stock

The internet giant’s fourth-quarter profit was boosted by net gains of US$13.5 billion, which included proceeds from offloading its JD.com stock

Total revenue in the December quarter reached US$22.6 billion, up 8 per cent from a year ago, as its video gaming and online advertising businesses slowed

by Iris Deng and Tracy Qu

Tencent’s domestic video gaming revenue grew just 1 per cent to 29.6 billion yuan in the fourth quarter, while its international games business rose 34 per cent to 13.2 billion yuan.

Tencent’s fintech and business services operations grew 25 per cent last quarter to 48 billion yuan.

Total monthly active users on WeChat and the mainland version Weixin reached 1.27 billion at the end of December.

Tencent reported 21.5 billion yuan in revenue for ads in the fourth quarter, down 13 per cent from a year ago.

Source: SCMP

https://www.scmp.com/tech/big-tech/arti ... f59a6d82a5

[winston]

not vested

Tencent Holdings (700 HK)
4Q21: Succumbed To Regulatory Pressure, Bottom Line Missed

Tencent reported weak 4Q21 results.

Revenue grew by 7.9% yoy to Rmb144.2b, broadly in line with consensus estimates.

Gross margin declined by 4ppt yoy during 4Q21 to 40.1% mainly due to continued investment in key strategic areas, in line with consensus expectation.

Non-GAAP operating margin contracted by 5.5ppt yoy to 23%.

Non-GAAP net margin declined 7.6ppt yoy to 17.3%, in line with street estimate.

Maintain BUY with a lower target price of HK$502.00.

Source: UOBKH

https://research.uobkayhian.com/content ... 16c9aa4bdc

[winston]

not vested

Tencent (700 HK): <Earnings First Take> Core net profit declined by 25% in 4Q21, below market expectations [BUY, TP HK$671.00]

Non-IFRS net profit declined by 25% y-o-y, below market expectations of c.12% decline

Revenue increased by 8% to Rmb144bn, slightly below market expectations of 9% growth

The overall sluggish performance was mainly due to slower-than-expected ads revenue growth and higher operating expenses

Expect near-term share price pressure

Source: DBS

[winston]

vested

Streaming price up at Tencent

Tencent (0700) raised its online streaming membership price to 238 yuan (HK$293.12) a year, or about 10 percent, after increasing it as much as 50 percent last April.

Tencent Video, the streaming unit of the tech giant, announced the latest price increase for its different subscription plans on Saturday, effective from April 20. Among them, the monthly subscription plan would be up from the current rate of 20 yuan to 25 yuan.

It said in its annual results earlier that in view of the latest market conditions, it is implementing a cost optimization process to reduce financial losses at Tencent Video while maintaining its leading position.

Last week, Tencent said it will shut down its gaming streaming platform Penguin Esports by early-June as it sharpens its businesses following a regulatory crackdown.

The company said on its official WeChat account that the decision to shut down the six-year-old platform, where hosts could live-stream themselves playing games in a model similar to Amazon's Twitch, was made because of changes to its business development strategy.

Source: The Standard

https://www.thestandard.com.hk/section- ... at-Tencent

[winston]

vested

M Stanley Foresees TENCENT (00700.HK) 1Q Rev. to Grow 2%, Rated Overweight

In wake of games growth normalization and further advertisement recovery delay, Morgan Stanley forecast in its report that TENCENT (00700.HK) will post an annual growth of 2% in 1Q22 revenue of RMB138.7 billion, and an annual decline of 15% in non-IFRS operating profit of RMB36.3 billion.

The broker anticipated back-loaded new domestic game launches and video account commercialization as catalysts.

While expecting the domestic game business to edge down yearly in 1Q, Morgan Stanley revealed that TENCENT will unroll three new games this month given resumption of game licensing approval.

For the foreign game business, the growth was expected to decelerate to 11%, mainly due to the impact of one-off deferred revenue recognition.

Related News: HSBC Global Research: CN Resumption of Game Approval Positive; Restates Buy on Tencent, NetEase

The rating on TENCENT was kept at Overweight with target price of $480 unchanged.

Source: AAStocks Financial News

[winston]

vested

Tencent Q1 net slides 23pc amid clamp and slowdown

Tencent's (0700) adjusted net profit slid 23 percent year-on-year to 25.5 billion yuan (HK$29.7 billion) in the first quarter.

The adjusted profit - excluding share-based compensation, net change from investee companies, impairment provisions, the Common Prosperity program, income tax effects, and others - is used to assess the performance of its core operations.

Net income also slumped 51 percent to 23.4 billion yuan, lagging estimates despite a big gain from the sale of stock in Singapore's Sea.

Sales barely rose to 135.5 billion yuan for the three months ended March after online ad revenue plummeted 18 percent.

Overall growth decelerated for a seventh straight quarter, to the slowest pace since the Shenzhen company went public in 2004.

Domestic game revenue dropped 1 percent to 33 billion yuan while its international game revenue saw a 4 percent rise to 10.6 billion yuan.

The tech giant's fintech and cloud division has become its No 1 revenue driver. But its 10 percent growth was also worse than expected after Covid lockdowns in cities like Shanghai and Shenzhen delayed cloud projects and cooled transactions.

Source: AP

https://www.thestandard.com.hk/section- ... d-slowdown

[winston]

vested

Tencent reports no revenue growth in first quarter amid regulatory uncertainty and economic headwinds under Covid-19 challenges

by Iris Deng & Tracy Qu

In the first quarter, monthly active users of WeChat and Weixin reached 1.288 billion, while daily active users of mini programs exceeded 500 million.

Source: SCMP

https://www.scmp.com/tech/big-tech/arti ... 2f916e3bb3