Moo Earnings wrote a post · Aug 16, 2022 02:15

Tencent Q2 2022 Earnings Preview - Betting the % change in closing price to win!

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Place your Bet on Tencent's percentage change (HK Markets) in closing price (e.g.+3%) of August 18 HK by 3:00 AM, August 18 ET. The mooer with the closest bet will win 300 points!

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Dear mooers,

Tencent's Q2 2022 Earnings Conference Call is to be hosted on August 17 after the HK markets close! The consensus estimate for revenue is expected at $19.97 billion, indicating an approximately 6.7% YoY decline. The EPS is estimated at 0.26 for this quarter.

Tencent's share has decreased by over 30% since 2022, and over 60% since its peak in February 2021.

WeChat, as one of Tencent's core products, has been described by Elon Musk as a Super App where people do almost everything in one place with an excellent interface, like chatting, sharing and payment. The user number of WeChat is expected to grow at a steady pace at 1.29 billion, up 3.3% YoY. The overall growth of Tencent has slowed for six consecutive quarters, and the market expects there could be a revenue drop in the second quarter.

Currently, Tencent's largest revenue driver comes from games. Whereas China regulators halted game approvals for 9 months and prevented the industry from launching new titles. Although licenses restarted in April, the industry has to brace for stricter regulation and fewer approvals going forward. Besides, as COVID and other headwinds harm China's growth, which results in a shrunken advertising demand, Tencent's online advertising division might also decline as the Big Tech reported in western countries.

Facing a challenging macro environment, actions have been taken by Tencent, like cost savings in operations, Wechat Channel's monetizing, and new product launching. Tencent's profitability might be improved in the near future.

The upcoming earnings results might offer more valuable information and create more trading opportunities!

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Tencent Q2 2022 Earnings Conference Call

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