HONG KONG, March 22 (Reuters) - Tencent Holdings (0700.HK) on Thursday said it would restrict its focus to its core business, while maintinaing cost-cutting and improving efficiencies, as it reported its first drop in annual revenue to date.
The world's largest video game company and operator of the WeChat messaging platform posted revenue of 554.55 billion yuan ($81 billion) for 2022, down 1% from a year earlier, after China's economic slowdown due to the pandemic and a long-running regulatory crackdown dented profits.
Analysts on average had expected 555.15 billion yuan, according to Refinitiv. Profit attributable to equity holders fell 16% to 188.24 billion yuan for the year versus a consensus estimate of 114.19 billion yuan.
Tencent Chair and CEO Pony Ma told reporters on a call the company would focus this year on getting more out of existing core businesses, rather than on "trying to do everything" and on operating in "red ocean markets", where competition is intense.
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