Tencent's Games Revenue Growth Could Accelerate -- Market Talk

Dow Jones
2024-11-29

0310 GMT - Tencent's games revenue growth could accelerate this year supported by faster monetization of top-ranked games and new titles such as "Dungeon & Fighter Mobile," DBS analysts Sachin Mittal and Andy Yu say in a research note. Its international games segment, which currently makes up 30% of its overall games revenue, could grow rapidly at a 12% compound annual growth rate from 2023-2026, they say. Its high-margin revenue streams, such as video accounts advertising, could support growth in its gross margin, they say. DBS expects Tencent's advertising revenue to grow at a 15% compound annual growth rate from 2023-2026. DBS maintains a buy call on Tencent but raises its target to HK$577.00 from HK$537.00. Shares last at HK$396.00. (sherry.qin@wsj.com)

 

(END) Dow Jones Newswires

November 28, 2024 22:10 ET (03:10 GMT)

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