Tencent revenue stagnates with China crackdowns and lockdowns

Tencent revenue stagnates with China crackdowns and lockdowns

Tencent revenue stagnates with China crackdowns and lockdowns

Tencent revenue stagnates with China crackdowns and lockdowns

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Chinese internet large Tencent on Wednesday stated document-low quarterly sales growth as Beijing’s regulatory crackdown — and the united states’ economically debilitating coronavirus lockdowns — persevered to wipe out gains within the tech quarter.

Revenue for the Shenzhen-primarily based company got here in at one hundred 35.5 billion yuan ($20.1 billion) within the first sector, putting a year-on-yr growth at nearly zero.

Revenue growth for Tencent has slumped for seven straight quarters and has reached the slowest pace since the company went public in 2004, according to Bloomberg.

Profit for the first quarter fell 51 percent compared to the year before, down to 23.4 billion yuan ($3.47 billion).

Tencent “implemented cost control initiatives and rationalized certain non-core businesses” during a “challenging first quarter”, founder and CEO Pony Ma said in a statement.

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Tencent has so far escaped the worst of China’s 18-month crackdown on the tech sector, driven by Beijing’s fears that private companies have grown too quickly and control too much data.

But the company — which used to be known for its world-leading growth — has still lost nearly $520 billion in value since its 2021 peak, according to Bloomberg.

Tencent also has to contend with a nationwide economic slump as China remains committed to a rigid zero-Covid policy, the last major global economy to do so.

Tencent’s first-quarter results came a day after China’s top economic official made a public show of support for digital platform companies, prompting speculation that Beijing’s crackdown on Big Tech may soon ease.

Chinese vice efficient Liu He provided assistance for “the sustainable and wholesome improvement of the platform economic system and the non-public economic system,” according to national broadcaster CCTV.

He additionally vowed to “help digital firms list in domestic and foreign capital markets”, CCTV pronounced.

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The Hong Kong-listed stocks of Tencent fell 0.76 percent to shut at HK$365.6 ($46.6) on Wednesday beforehand of the effects declaration.

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