Tencent reports first-quarter profit slump, no growth in revenue

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Tencent reports first-quarter profit slump, no growth in revenue
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Tencent reported quarterly profit that halved from a year ago and recorded no revenue growth, its worst performance since it went public

China’s Tencent posted a quarterly profit that halved from a year ago and recorded no revenue growth, its worst performance since it went public, and warned that advertisers in consumer, eCommerce and travel businesses have slashed spending.

Tencent’s market value has more than halved from its peak of HK$7.3 trillion in February 2021 to about $451 billion now, but it remains the country’s most valuable company. Advertising sales have declined sharply, falling 18 per cent in the first quarter, following a 13 per cent drop in the October-December period as increased competition from rivals including TikTok owner ByteDance and COVID-19 lockdowns hit advertising appetite.

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