Tencent's Business-Mix Changes Boost Resilience -- Market Talk

Dow Jones11-20

0636 GMT - Tencent is making business-mix changes that S&P Global Ratings says boost its diversity and operating resilience. Profitable new services like video accounts and Weixin search were key drivers of the China-based internet company's online ad revenue in 3Q, which rose 20% on year, outpacing the industry average, S&P analysts say in a note. They expect segment momentum to persist, rising 22% in 2023 and 20% in 2024. Other services like mini games also helped revenue and margins, and S&P sees scope for more monetization as these services draw on Weixin's large user base. S&P tips 2023-2024 revenue growth at 11% and 10%, respectively. Tencent may also adopt a more shareholder-friendly policy than previously thought, S&P says, putting its potential spend on dividends and buybacks in 2023 at CNY70 billion. (fabiana.negrinochoa@wsj.com)


(END) Dow Jones Newswires

November 20, 2023 01:36 ET (06:36 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.


We need your insight to fill this gap
Leave a comment