Tencent’s Sales Rebound Though Concerns Persist on China Outlook
- Revenue beats but net income misses despite cloud unit gains
- China’s internet firms trying to climb out of historic trough
Tencent Holdings Ltd.’s headquarters in Shenzhen, China.
Source: Bloomberg
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Tencent Holdings Ltd. posted its fastest pace of revenue growth in more than a year but earnings missed estimates, reflecting an uneven internet sector recovery during China’s post-pandemic reopening.
China’s most valuable company grew online advertising 17% as a gradual resumption of marketing fuels the business for sector leaders including Baidu Inc. Yet analysts had projected a sharper bounceback as the world’s No. 2 economy let down years of Covid Zero barriers. Tencent’s shares slid as much as 3.9% in Hong Kong.