TencentAs the Chinese tech giant, China continues to feel the effects of Beijing’s regulation tightening on its domestic sector of technology, the company reported the fourth quarter’s slowest quarterly revenue growth.

However, profit rose in fourth quarter.

These are the results of Tencent’s fourth quarter comparison to consensus estimates from Refinitiv: 

• Revenue: The Chinese Yuan was 144.18 trillion, or $22.22 billion more than the 147.6 Billion yuan. This is an 8% increase year-over-year. This is the lowest revenue growth rate since 2004 when the company was publicly traded.
• The company’s equity shareholders are entitled to a share of profits 94.96 billion yuan vs. 30.7 billion yuan expected. It’s an increase of 60% from the year before.

Tencent’s total revenue for 2021 was 560.12 Billion Yuan. This is 16% more than 2020. Analysts were expecting 566.3 billion. This was the lowest annual revenue growth rate ever recorded.

Tencent lost $470 million in market value in the first half of 2021. Tencent is now facing a variety of headwinds due to China’s crackdowns in various areas, from education and gaming.

Tencent’s biggest revenue generator is online gaming. In 2011, regulators cut the amount of timeOnline games are available for children younger than 18 years of age. Since July 2012, no games have been approved by authorities. Games in China require regulatory approval before they can be published and monetized.

Beijing, China also participated in the last year’s Olympics cracked down on after-school education companies. Tencent may be facing a problem in its advertising business, as educational firms could buy advertisements with Tencent. Also, macroeconomic questions such as sluggish consumer spendingChina may also have an impact on the company’s ad revenue.

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