Chinese tech group Tencent reported its slowest revenue growth on record after being hit by China’s crackdown on technology companies and tough Covid-19 restrictions. The company’s revenue was largely flat in the three months to March, while its net profit plummeted 51% to RMG 23 billion ($3.4 billion) compared with a year ago, missing analyst estimates, reports the Financial Times.
Tencent’s results come a day after China’s top economic official met dozens of executives and industry experts, pledging “support” for technology companies amid a deepening economic slump. Tencent said this was encouraging but it would take time for this to equate to concrete action.
“From the senior most level there is clear supportive signals released [for “platform economy” companies like Tencent],” Martin Lau, Tencent’s president, said on an earnings call. “For this to translate to real impact on our business there is going to be a time lag.”
You must log in to post a comment.