Tencent Holdings plans to more than double its stock buyback program to at least $12.8 billion in 2024, mollifying investors concerned about a gradual dissipation of growth during a Chinese economic downturn.
Revenue rose to 155.2 billion yuan for the three months ended December, compared with the 157.4 billion yuan average forecast. Net income was 27 billion yuan, versus the 33.3 billion yuan projected. On Wednesday, Tencent said it was boosting its share buyback program to more than HK$100 billion in 2024, and proposed raising its annual dividend by 42%.
Alibaba unveiled $25 billion in fresh stock repurchases following disappointing December-quarter sales, while JD.com’s $3 billion buyback program propelled its shares higher. Tencent’s closest gaming rival, NetEase, more than doubled its dividend payout from a year ago, after both revenue and earnings missed estimates.
Sales of new casual title Dream Star declined in recent months thanks to fierce competition with NetEase, but the highly anticipated Dungeon & Fighter Mobile could help pick up the slack after the action game won a long overdue license in February.