...HONG KONG (S&P Global Ratings) Nov. 18, 2022--Tencent Holdings Ltd. has sufficient momentum to ease the pain of a likely slowdown in business growth this year and next. We believe revenue is likely to rise only moderately under tough market conditions. But earnings drivers include new game approvals--with one approval granted on Nov. 17, 2022--robust growth of Video Accounts and Mini Programs, and a recovery in advertising. The earnings resilience in these areas tempers the effects of slowing revenue in other businesses, and sustains Tencent's strong cash flows to support higher levels of shareholders' return and sustained investment spending. We believe the government's desire to limit online game play, and the relatively high penetration of mobile game users, indicate only modest future growth. Government influence could also mean slower growth for Tencent's fintech business as the company implements new measures to meet regulators' growing compliance requirements. As such, we project...
