According to Tencent’s quarterly results, the number of monthly active users (MAU) of WeChat grew slightly to 1,313 million in the fourth quarter of 2022. Smart device MAU of QQ was 572.1 million.
Tencent, the Chinese tech giant, has reported mixed results for Q4 2022, with revenues from VAS4 decreasing by 2% to RMB70.4 billion on a year-on-year basis.
However, International Games has driven revenue growth by 5% to RMB13.9 billion, or up 11%, excluding currency impact and Supercell-related true-up adjustments.
Successful launches of GODDESS OF VICTORY: NIKKE and Warhammer 40,000: Darktide, as well as key franchises VALORANT and League of Legends, contributed to the growth.
Domestic Games experienced a 6% decrease in revenues to RMB27.9 billion, while Social Networks revenues decreased by 2% to RMB28.6 billion. However, Online Advertising saw a 15% increase in revenue to RMB24.7 billion, with eCommerce platforms, FMCG, and games advertisers contributing notably to the growth.
FinTech and Business Services revenues decreased by 1% to RMB47.2 billion, with FinTech Services revenue growth slower than the previous quarter due to COVID-19 outbreaks temporarily suppressing payment activity. Adjusted EBITDA was RMB49.6 billion, up 17% YoY.
In terms of Communication and Social, time spent on WeChat increased throughout 2022, driven by growth in both chat and non-chat use cases. Among non-chat use cases, time spent on Moments was broadly stable year-on-year in the fourth quarter of 2022.
Mini Programs and Video Accounts doubled and tripled year-on-year, respectively, each exceeding time spent on Moments.
Tencent’s fee-based VAS subscriptions decreased 1% year-on-year to 234 million. Video subscription revenue increased, though subscriptions slightly reduced to 119 million. For music, Tencent offered attractive membership privileges and enhanced user engagement in various music genres, driving growth in paying users and ARPU.
In conclusion, Tencent’s mixed results for Q4 2022 show a complex picture for the tech giant. While International Games drove revenue growth, other areas, such as Domestic Games and Social Networks, experienced a decrease in revenue.
However, Tencent remains focused on developing new services and revenue lines, better positioning itself for sustainable growth in the future.
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