Tencent’s latest financial report is a mixed bag

Tencent reported financials for the 2018 financial year and Q4 2018. Quarterly revenue reached RMB 84.9 billion (US$12.7 billion) in revenue, up 28% year-on-year, narrowly beating expectations of RMB

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Tencent’s latest financial report is a mixed bag

Tencent reported financials for the 2018 financial year and Q4 2018. Quarterly revenue reached RMB 84.9 billion (US$12.7 billion) in revenue, up 28% year-on-year, narrowly beating expectations of RMB 83.4 billion.

However, net profits in Q4 2018 were RMB 14.2 billion, down 32% year-on-year, and below expectations of RMB 18.9 billion. This is the second time in 13 years (since Q3 2005) Tencent has recorded a decline in year-on-year profits during a quarter.

Yearly revenue reached RMB 312.7 billion, up 32% year-on-year, while net profits were RMB 80 billion, up 10% year-over-year.