Tencent Beats Estimates, Signaling the Worst Is Behind It
- Net income crushes estimates but sales decelerated sharply
- Tencent and Alibaba are fighting to expand in a tepid economy
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Tencent Holdings Ltd. reported the slowest pace of sales growth since it went public in 2004, as China’s largest company struggles to revive a battered gaming division while battling the country’s decelerating economy.
The social media and entertainment giant posted a better-than-projected 17% rise in first-quarter net income, helped by a one-off gain of more than $1.5 billion from the expanding valuations of its sprawling investments in finance and gaming companies around the globe. But some investors zeroed in on its disappointing 16% sales gain -- the lowest on record. The company’s shares slid 1.9% in Hong Kong on Thursday.