The number of monthly active users (MAU) of WeChat grew by 3.5% to 1,268.2 million in the fourth quarter of 2021, according to Tencent’s quarterly results. Smart device MAU of QQ decreased by 7.2% to 552.1 million.
Retailers can leverage the integration of WeCom’s enterprise communication tool with Mini Programs to enable online conversations between their salespeople and customers within their private domain environments. WeChat Mini Programs facilitated independent merchants to thrive within their own private domains, with their physical goods GMV doubling in 2021.
For the fourth quarter of 2021, WeChat daily active advertisers expanded by over 30% year-on-year. Over one-third of Moments’ advertising revenue was generated from advertisements using Mini Programs as landing pages and advertisements connecting users to customer service representatives via WeCom.
WeChat Video Accounts’ time spent per user and total video views more than doubled year-on-year as Tencent enriched content diversity and enhanced the product experience.
Video Accounts Live Streaming achieved significant breakthroughs in user reach and engagement, exclusively hosting popular boy band Westlife’s first-ever online concert, which drew 27 million viewers.
Tencent believes Video Accounts will provide significant monetization opportunities, including short video feeds advertisements, live streaming tipping, and live streaming eCommerce.
QQ integrated Unreal Engine’s graphics capabilities to enable real-time rendering and physics simulation, providing more attractive visuals and lifelike interactions for users. Tencent is testing an application of Unreal Engine in Super QQ Show, which allows users to customize and dress up their 3D virtual avatars, for use in various social scenarios.
The fee-based VAS subscriptions grew 8% year-on-year to 236 million. Tencent Video increased its subscription counts by 1% year-on-year to 124 million and cemented its number one position in China with diversified content across animated series, drama series, and sports.
For music, Tencent grew subscription counts 36% year-on-year to 76 million, benefitting from expanded sales channels and high-quality content and services.
Total revenues were RMB560,118 million (USD87,852 million) in 2021, an increase of 16% over 2020. Total revenues in Q4 2021 were RMB144,188 million (USD22,615 million), an increase of 8% YoY. Total cash were RMB281,286 million (USD44,118 million) at the end of the quarter.
- Operating profit was RMB33,151 million (USD5,200 million) in Q4, a decrease of 13% YoY.
- The operating margin decreased to 23% from 28% last year.
- Profit for the period was RMB25,758 million (USD4,040 million), a decrease of 25% YoY. Net margin decreased to 18% from 26% last year.
- Profit attributable to equity holders for the quarter was RMB24,880 million (USD3,902 million), a decrease of 25% YoY.
- Basic earnings per share were RMB2.609. Diluted earnings per share were RMB2.547.