Daily Management Review

Analysts wait for Tencent to grow again


08/14/2019


Tencent Holdings is expected to report improved financials during the quarterly report, while the market expects revenue growth and profits of the Chinese giant. It is assumed that mobile games will contribute to development of the company’s game business, while other areas, such as financial technology and cloud computing, should increase profits in general.



Chris Yunker
Chris Yunker
The market expects Tencent to report earnings in the second quarter on Wednesday. The main gaming business of the company and its financial technology division will lead to a significant increase in revenue.

The Chinese giant is expected to report revenue of 93.42 billion yuan ($ 11.9 billion) according to Refinitiv estimates. If this indicator is achieved, annual growth will be almost 27%. Earnings attributable to shareholders will increase 16% to 20.74 billion yuan ($ 2.64 billion), according to Refinitiv estimates.

As part of the previous corporate reporting season, Tencent reported the slowest sales growth since its IPO in 2004. This was largely due to the fact that last year, the profitable gaming business of the Internet company from Shenzhen suffered from regulatory measures by the Chinese government.

Release and monetization of video games in CHina must be approved by regulatory authorities. This hurt Tencent's business, which relies heavily (almost 41% in Q1) on online gaming revenue.

In 2018, capitalization shrunk by billions of dollars. At the beginning of the year, China began to approve games again, and a number of Tencent games received a green light. Shares of the company revived a bit and grew by more than 6% this year.

source: bloomber.com






Science & Technology

Amazon will allow customers to pay with palms instead of cards

Complete Computer System For Self Driving Cars Launched By Qualcomm

In A Lifetime We Could Accumulate 20Kg Micro-Plastic In Our Body

Creator Of The First 'Gene-Edited' Babies Of The World Gets 3 Year Jail Term In China

China to deploy giant Beidou global navigation system in 2020

VW Zwickau factory is getting ready for electric cars production

Airbus: Passenger hybrid aircraft to take off before 2035

Ocado To Introduce ‘Mini Robotic Warehouse’ With Standard Productivity

AB InBev’s Piled Up Alcohol Is ‘Too Good to Waste’

Ericsson Mobility forecasts nearly fourfold increase in mobile traffic by 2025

World Politics

World & Politics

UK adds Greenpeace, PETA to extremist organizations list

Indonesia, UAE sign nearly $23B deal

US to respond to Iran’s attacks on US bases in Iraq

Irish Passport issues hit record in anticipation of Brexit

Reporters Without Borders calls to release Julian Assange

IMF allocates Ecuador $ 500 mln more to support reforms

French pension reform chief to resign

Poland refuses to join EU 2050 climate deal