Tencent doubles buybacks to over US$12.8b as sales miss targets
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The news: China’s Tencent has announced plans to double its share buybacks this year after posting weaker than expected fourth-quarter revenue figures as its gaming revenue contracted.
The numbers: The company reported a 7% rise in Q4 revenue on Thursday, at 155.19 billion yuan ($33.48 billion) for the three months ending 31 December 2023. Its core gaming business saw revenue in China slump 3% to 27 billion yuan, while international gaming revenue grew just 1%.
Tencent also intends to at least double its share repurchases from $9.59 billion in 2023 to over $19.57 billion in 2024, as well as raising its annual dividend by 42%.
The context: A slew of tech companies including Alibaba and JD.com have announced plans to boost dividends or share repurchases after posting weaker than expected results for the December quarter.
The WeChat operator may also be trying to calm investor concerns over continued economic uncertainty in China, as regulators continue their efforts to enforce stability by tightening trading conditions and rolling out a number of rescue packages.
The sources: Tencent Q4 results press release, Reuters
