Chinese tech giant Tencent reports slowest revenue growth amid Beijing crackdown
The world’s biggest gaming firm Tencent posted its slowest sales growth this morning amid an advertising decline and crackdown on tech by Beijing.
The Chinese company reported a measly eight per cent rise in fourth-quarter revenue to 144.2 billion yuan this morning: its slowest growth since going public in 2004, Refinitiv data said.
Revenue for the full year rose only 16 per cent, again its slowest ever pace.
The news comes after Beijing imposed stringent rules on tech giants, placing new rules on user interactions, as well as curbing mergers and acquisitions across the country.
For instance, authorities have frozen game approvals since August last year, diminishing advertising opportunities for Chinese companies.
In a major blow last year, Beijing authorities found its messaging and payments app WeChat illegally transferred user data, and ordered it to end exclusive music copyright agreements, according to Reuters.
Nonetheless, the company said in its announcement this morning that it was confident that Tencent could boost revenue back and make a significant recovery.
From the UK’s perspective, Tencent has pumped cash into a number of UK tech and fintech firms, including building a sizeable stake in digital bank Monzo and co-leading a $120m investment into software-as-a-service firm Omnipresent.
Just yesterday it announced it would be backing London corporate card fintech Jeeves in its $180m funding round.