By Yifan Wang
Tencent Holdings is scheduled to report results for the first quarter on Wednesday. Here is what you need to know:
NET PROFIT FORECAST: The Chinese tech giant’s net profit is expected at 29.93 billion yuan ($4.30 billion), according to a FactSet poll of analysts. That would be 28% higher than profit of CNY23.41 billion a year earlier.
REVENUE FORECAST: Revenue is expected to rise 8.0% to CNY146.37 billion, the FactSet poll showed.
WHAT TO WATCH:
— Advertising Recovery: Tencent makes a significant portion of its total revenue from online advertising operations. The segment was under severe pressure for most of 2022 and resumed top-line growth only in the December quarter. Investors will be looking for comments about the pace and sustainability of Tencent’s advertising recovery, especially given China’s weaker-than-expected consumption rebound after its reopening.
— Game Business: Investor hopes for China’s gaming industry have risen as regulators have approved more games regularly. The market will be watching for indications of Tencent’s new launch plans and monetization trends in its core gaming business.
Write to Yifan Wang at yifan.wang@wsj.com
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