This site uses cookies to provide you with a better experience. For information on our Privacy and Cookie Policy, please visit this page. By continuing to use the site or closing this banner, you are agreeing to our terms of use. Close
Trade Events Center promotes your trade shows to worldwide
Tencent shares drop on concerns over WeChat growth
2014/3/20
Shares in China internet giant Tencent dropped more than 4% before recovering after the firm reported slowing growth in its messaging app WeChat.
On Wednesday, Tencent said profits for 2013 were 3.9bn yuan ($641m), a 13% increase from the year before.
However, growth in its Weixin/WeChat user base slowed to just 6% over the year.
Total users now number 355 million, compared to 270 million in 2012.
Although revenue increased by 38% from a year before, profits were hurt by increased selling and marketing costs as the company seeks to promote its games, e-commerce sites and WeChat.
The total spent on selling and marketing increased by 39% to 2.03bn yuan ($327m).
In order to appease investors, Tencent announced a stock split, where each current shareholder would get five shares for each one they already own.
Tencent has been the best performing stock on Hong Kong's index since it went public in 2004.
