Tencent Revenue Disappoints in Warning for China Tech Sector
- Sales and net income both missed analysts’ estimates
- Intensifying Chinese economic turbulence is muddying outlook
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Tencent Holdings Ltd.’s revenue missed estimates, signaling an uneven recovery for the world’s biggest internet arena as it grapples with rising Chinese economic turbulence and anemic consumer sentiment.
The country’s largest company reported a less-than-expected 11% rise in revenue after sales from major divisions including gaming and cloud services fell well short of projections. Online advertising surged 34% — the fastest in almost five years — in part because of algorithmic tweaks and a favorable comparison with last year’s Covid trough.