Tencent reported Total revenue of 145 billion yuan ($20.8 billion) in the fourth quarter of 2022which represents an increase of 0.5% compared to the corresponding period in 2021.
Profit for the period increased 19% year-on-year to 30.6 billion yuan ($4.4 billion), with net profit increasing from 18% to 21%. Operating profit also increased by 19% to 39.4 billion yuan ($5.7 billion), with operating margin increasing from 23% to 27%.
“During 2022, we have increased our business efficiency, sharpened our focus on core activities, and developed new services and revenue lines, including international video and game accounts,” said Tencent CEO and Chairman Pony Ma. “These changes position us to benefit from the recovery in economic growth in China, which indicates that our user activity is now in full swing.
“We are investing in our artificial intelligence capabilities and cloud infrastructure to adopt basic models that we believe will improve the experience of our existing products and services and allow us to explore the introduction of new products. Looking ahead, we will continue to seek to create user value, commercial value and social value through technology and innovation.”
Mixed year
2022 turned out to be a challenging year for Tencent, with the company reporting its first quarterly loss since listing, facing numerous lawsuits and grappling with China’s increasing regulation of the gaming sector. However, analysts predicted the company would bounce back in 2023, with the possibility of more stability in the fourth quarter. The company’s latest financial report indicates that these predictions, at least in part, were accurate.
Revenue for the entire year fell 1% compared to 2021, reaching 554.6 billion yuan ($79.6 billion). Operating profit fell 4% to 153.5 billion yuan ($22 billion), with operating profit remaining stable at 28%. Profit for the full year reached 119.2 billion yuan ($17.1 billion), a decrease of 7%, with net profit falling from 23% in 2021 to 21%.
at a press conference, Tencent President Martin Lau said, “Last year’s efforts resulted in a more focused business structure, more responsive teams, and pushed our employees and managers to focus more on costs and efficiency.”
We listed Tencent as one of the top 50 mobile game makers of 2022.
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