[Asia Economy Reporter Donghyun Choi] Tencent, China's largest internet company, recorded its lowest quarterly revenue growth since its listing in 2004 in the fourth quarter of last year.
Tencent announced on the 23rd that its revenue for the fourth quarter of last year was 144.2 billion yuan (approximately 27 trillion won), an 8% increase compared to the same period last year. This is the first time since Tencent was listed on the Hong Kong Stock Exchange in 2004 that its quarterly revenue growth rate has been in single digits.
The slowdown in performance growth is attributed to the fact that Tencent's main source of income, domestic game revenue in China, increased by only 1% compared to the same period last year. This is due to the Chinese authorities' IT regulations. Since July 22 of last year, the Chinese government has not issued new game licenses (approval for game services within China) for over eight months and has also restricted the gaming time of minors.
Tencent's total revenue for last year increased by 16% compared to the previous year, but this figure is also at a record low. Tencent's stock price has fallen more than 33% over the past 12 months.
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