Tencent in big earnings miss – Naspers, Prosus tumble

Chinese gaming and social media giant Tencent Holdings reported flat growth in first quarter revenue, its worst-ever such performance, and also missed market estimates as China’s economic slowdown and a freeze on new game licences weighed on its business.

It posted revenue of to C¥135.5-billion (R320.4-billion) in the quarter ended March, versus ¥135.3-billion in the same quarter last year, and below an average analyst estimate of C¥141-billion yuan drawn from 16 analysts, according to Refinitiv.

Profit attributable to equity holders of the company also fell 51%.

The news sent shares in Tencent’s largest shareholder, Amsterdam-listed Prosus, tumbling. Prosus parent Naspers also fell sharply in trading on the JSE in Johannesburg.

At of 10.40am South African time, Prosus was trading down 3.6% at E45.16/share; Naspers was down 4.7% at R1 599/share.  — Josh Ye, (c) 2022 Reuters, with additional reporting (c) 2022 NewsCentral Media

• This is a developing story