Daily Brief TMT/Internet: True Corp Pcl, Tencent, Sumo Logic Inc and more

In today’s briefing:

Merger Arb Mondays (29 Aug) – Ramsay, DTAC/True, Pendal, Link Admin, Ramsay, Infomedia, ResApp, MACA
Tencent: Domestic Game Approvals Over-Hyped as a Revenue Growth Driver
Sumo Logic. 2QFY23 Wrap: Rising From The Ashes?

Merger Arb Mondays (29 Aug) – Ramsay, DTAC/True, Pendal, Link Admin, Ramsay, Infomedia, ResApp, MACA

New title approvals halved during 2021, yet overall industry games revenue grew by 3.4%y/y. 1H22 new games approvals are down a further 82%y/y, yet games revenue is down 1.8%.
Tencent has lost revenue market share to the overall Chinese online game software market, most notably to NetEase, this year.
Tencent’s paying gamer participation rate has dropped to levels last seen during 2018.

Sumo Logic Inc (SUMO US) surprised investors and reported solid 2QFY23 results pushing shares up over 10% during a regular trading session on Friday.
Provider of cloud-based machine data analytics reported revenue/non-GAAP EPS of $74.1M/($0.10), above consensus, and improved FY23 outlook.
Management focused on delivering more efficient growth and reduced hiring plans. Customer metrics remained strong, with a dollar-based net retention rate of 115%.

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