Tencent reported almost no revenue growth during Q1 2022 at RMB 135.5bn ($20bn), much lower than consensus estimates of RMB 141bn ($20.9bn). This was its slowest quarterly sales since it got listed. Its quarterly profits were at RMB 23.4bn ($3.5bn), down 51% YoY. Tencent’s online gaming business revenues were almost unchanged at RMB 43.6bn ($6.5bn). Its domestic revenues formed RMB 33bn ($4.9bn) of its total revenues, down 1% YoY while its foreign gaming revenues rose 4% YoY to RMB 10.6bn ($1.6bn). Ad revenues were down 18% to RMB 18bn ($2.7bn) while its fintech and business services (including cloud) were up 10% to RMB 42.8bn ($6.3bn). The soft results come after regulatory uncertainty surrounding China’s tech industry coupled with strict lockdown measures on businesses. However, in recent days a positive narrative has opened up where China’s top political advisory body spoke about ‘sending a signal of support to the industry’, as per SCMP. But Tencent president Martin Lau said, “It will take some time for the corrective measures to be turned into normalized regulation, and then the specific supportive measures will be introduced”.

Tencent’s dollar bonds were lower with its 3.94% 2061s down 0.5 points to 74.7, yielding 5.5%.

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