Chinese social media and video gaming giant Tencent Holdings reported worse-than-expected earnings in the fourth quarter of 2023, dragged down by weaker performance in its video gaming business, reports the South China Morning Post. The Hong Kong-listed company saw revenue in the three months ended December 31 rise 7% from a year earlier to RMB 155.2 billion ($21.5 billion). It missed the consensus estimate of RMB 157.4 billion, according to analysts polled by Bloomberg.
Net income in the period was RMB 27 billion, down 75% due to a high base from gains from the disposal of Meituan shares a year earlier. That was still below the average analysts’ forecast of RMB 33.29 billion.
For the full year, Tencent posted net income of RMB 115.2 billion, down 39% from 2022 and missing expectations of RMB 123.5 billion. Annual revenue grew 10% to RMB 609 billion, slightly below analysts’ estimates of RMB 612.7 billion.