Tencent Holdings Limited (TCEHY)

[DiscoverGold]

Tencent Earnings, Revenue Top Fourth-Quarter Estimates
By: Investor's Business Daily | March 18, 2020

China internet giant Tencent Holdings (TCEHY) reported fourth-quarter results Wednesday that beat on revenue and adjusted earnings but fell below estimates on net income. Tencent stock fell.

Reporting before the market open, Tencent said revenue was $15.16 billion, topping estimates of $14.88 billion. The company said adjusted earnings were 38 cents a share, above estimates of 34 cents.

But the company reported lower-than-anticipated net income of $3.1 billion, below estimates of $3.66 billion.

Tencent stock fell 5.1%, closing at 42.28 on the stock market today. The company is a leader in messaging, payment services and gaming in China.

Tencent Stock: Double-Digit Revenue Growth
Total revenue in the quarter rose 25%, maintaining a string of double-digit revenue growth going back more than four years. Adjusted earnings climbed 27%.

Online gaming revenue rose 25% to $4.3 billion, primarily driven by revenue growth from smartphone games. Revenue from value-added services reached $7.4 billion, up 20%. In addition, revenue from financial technology and business services increased by 39% to $4.2 billion

The company ended the year with 1.16 billion users of its WeChat messaging service, up 6%.

"During 2019, we reinforced our leadership in consumer internet and extended our presence in industrial internet, while sustaining healthy operating and financial metrics," Ma Huateng, Tencent chairman and chief executive, said in written remarks with the Tencent earnings release.

Tencent Earnings: Cloud Revenue At $2.4 Billion
For the year, Tencent reported cloud revenue of $2.4 billion, with paying users exceeding 1 million. That could provide a long-term boon to Tencent stock.

"We increased our market share and gained presence in verticals such as internet services, tourism, municipal services and industrial sectors, leveraging our consumer reach to assist enterprises in their digital upgrades," the company said.

However, it added, "The Covid-19 pandemic is delaying customers' implementation of cloud-related initiatives and will thus negatively impact our near-term cloud services revenues, but we believe enterprises will be increasingly keen to adopt cloud-based solutions over the longer term."

Read Full Story »»»

DiscoverGold