Highlights of Tencent's Q4 Division
1 | Recovery in Revenues - Repositioning for sustainable future growth
“During 2022, we increased our business efficiency, sharpening our focus on core activities and developed new services and revenue lines, positioning us for a sustainable growth model in the future.”
“During 2022, we increased our business efficiency, sharpening our focus on core activities and developed new services and revenue lines, positioning us for a sustainable growth model in the future.”
2 | Rebound in Advertising
“Adapted to new industry landscape and returned to YoY revenue growth in 4Q22
“our ad revenue returned to double-digit growth in Q4”
Improved long-term position by launching Video Accounts in feed ads, driven capability and ML architecture”
“Adapted to new industry landscape and returned to YoY revenue growth in 4Q22
“our ad revenue returned to double-digit growth in Q4”
Improved long-term position by launching Video Accounts in feed ads, driven capability and ML architecture”
3 | Ad Outlook - Cautiously Optimistic on China consumption recovery & SFV
“…overall outlook, we believe the advertisers generally cautiously optimistic on a China consumption recovery this year.
“great demand to advertise in the short-form video format to consumers…”
“…overall outlook, we believe the advertisers generally cautiously optimistic on a China consumption recovery this year.
“great demand to advertise in the short-form video format to consumers…”
4 | FinTech Rebounding - Double Digit QTD 1Q23 Growth
“Significant slowdown in YoY growth during 4Q22 due to temporary COVID19 impact
Resumed double digits YoY growth QTD in 1Q23 versus a high base period, amid consumption recovery”
“well positioned to capture further opportunities in the FinTech sector as the regulatory environment in China normalize”
“Significant slowdown in YoY growth during 4Q22 due to temporary COVID19 impact
Resumed double digits YoY growth QTD in 1Q23 versus a high base period, amid consumption recovery”
“well positioned to capture further opportunities in the FinTech sector as the regulatory environment in China normalize”
5 | Expect better FinTech Monetization from VAS
“basic take rate of our FinTech business will remain stable…can roll out value-added services to allow merchants to have better conversion rates…would provide additional monetization mechanism for us.”
“basic take rate of our FinTech business will remain stable…can roll out value-added services to allow merchants to have better conversion rates…would provide additional monetization mechanism for us.”
6 | Improving Profitability
“…our financial performance, which has started to improve since mid-2022”
“reflect our proactive initiatives, coupled with an improved macro environment.
“…our financial performance, which has started to improve since mid-2022”
“reflect our proactive initiatives, coupled with an improved macro environment.
7 | 3 Drivers of Improving Profitability
1) Focused on Reducing Costs
First, we executed efficiency initiatives to improve margins and promote earnings quality…reducing costs and sharpening business focus.”
2) Developing new profitable revenues
Second, we made significant progress in developing new high-quality and high-potential revenue streams such as video account in-feed ads and international games.
3) Regulatory Normalization & COVID Recovery
Third, for the macro environment, we're encouraged to see positive signals related to post COVID recovery and regulatory normalization.
1) Focused on Reducing Costs
First, we executed efficiency initiatives to improve margins and promote earnings quality…reducing costs and sharpening business focus.”
2) Developing new profitable revenues
Second, we made significant progress in developing new high-quality and high-potential revenue streams such as video account in-feed ads and international games.
3) Regulatory Normalization & COVID Recovery
Third, for the macro environment, we're encouraged to see positive signals related to post COVID recovery and regulatory normalization.
8 | Games - Focusing on Int Expansion
…now gearing up for global expansion.
In international markets, we have made strong progress in reinforcing our growth potential over the medium and long term.
international games revenue for Q4 USD 2bn ~ 1/3 of our games revenue.
…now gearing up for global expansion.
In international markets, we have made strong progress in reinforcing our growth potential over the medium and long term.
international games revenue for Q4 USD 2bn ~ 1/3 of our games revenue.
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