Bulletin: Tencent's Growth Catalysts Are Materializing - S&P Global Ratings’ Credit Research

Bulletin: Tencent's Growth Catalysts Are Materializing

Bulletin: Tencent's Growth Catalysts Are Materializing - S&P Global Ratings’ Credit Research
Bulletin: Tencent's Growth Catalysts Are Materializing
Published Aug 17, 2023
3 pages (1287 words) — Published Aug 17, 2023
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Abstract:

This report does not constitute a rating action. HONG KONG (S&P Global Ratings) Aug. 18, 2023--Tencent Holdings Ltd.'s second quarter results point to strengthening competitive positioning. The gains were driven by its Video Accounts and Weixin platform. Despite tepid macroeconomic conditions, revenue growth remains robust and profitability is improving with favorable revenue mix, supporting our rating on Tencent (A+/Stable/--). Online advertising revenue grew 34% year-on-year (YoY) during the quarter, much higher than the industry online advertising growth (estimated at 8% YoY, according to QuestMobile). Video Accounts advertising bolstered Tencent's advertising revenues significantly. The unit contributed renminbi (RMB) 3 billion during the quarter and accounted for 12% of online advertising revenues. Video Accounts' annual advertising revenue run-rate is already nearing our

  
Brief Excerpt:

...August 17, 2023 This report does not constitute a rating action. HONG KONG (S&P Global Ratings) Aug. 18, 2023--Tencent Holdings Ltd.'s second quarter results point to strengthening competitive positioning. The gains were driven by its Video Accounts and Weixin platform. Despite tepid macroeconomic conditions, revenue growth remains robust and profitability is improving with favorable revenue mix, supporting our rating on Tencent (A+/Stable/--). Online advertising revenue grew 34% year-on-year (YoY) during the quarter, much higher than the industry online advertising growth (estimated at 8% YoY, according to QuestMobile). Video Accounts advertising bolstered Tencent's advertising revenues significantly. The unit contributed renminbi (RMB) 3 billion during the quarter and accounted for 12% of online advertising revenues. Video Accounts' annual advertising revenue run-rate is already nearing our initial two- to three-year forecast of RMB15 billion annual revenue. Moreover, increasing user...

  
Report Type:

Bulletin

Issuer
Tencent Holdings Ltd.
Sector
Global Issuers
Country
Cayman Islands
Region
Latin America
Format:
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Cite this Report

  
MLA:
S&P Global Ratings’ Credit Research. "Bulletin: Tencent's Growth Catalysts Are Materializing" Aug 17, 2023. Alacra Store. May 14, 2025. <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Tencent-s-Growth-Catalysts-Are-Materializing-3043821>
  
APA:
S&P Global Ratings’ Credit Research. (). Bulletin: Tencent's Growth Catalysts Are Materializing Aug 17, 2023. New York, NY: Alacra Store. Retrieved May 14, 2025 from <http://www.alacrastore.com/s-and-p-credit-research/Bulletin-Tencent-s-Growth-Catalysts-Are-Materializing-3043821>
  
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