Highlights of Tencent's Q4 Division

9 | Int Games - Not slow growth mode, transitional period of hangover from WFH, still low market share
“don't think it's stuck in slow growth mode.
last year has been a transitional period…hangover from the work from home phenomenon
…structurally very positive about the game business globally, including internationally.”

10 | Strong Pipeline
For the next few years, we're building a strong pipeline to tap into multiple opportunities in the international markets.
Notably, we're expanding our regional IPs into new platforms, markets and genres…also supporting our emerging studios to launch bigger titles with greater longevity as well as bringing more highly acclaimed PC and console IPs to mobile devices.

11 | Reigniting domestic gaming growth with new games
In domestic market, we navigated through industry challenges during 2022 and are now well positioned for reigniting growth. Our key franchises have demonstrated resilience and longevity.

12 | Normalisation of Domestic with New Games
Furthermore, we are benefiting from normalization of BanHao approval, which enables us to strengthen our game releases for 2023 and beyond. Under the new industry norm, we are sharpening our focus on launching new games.

13 | Don’t expect reopening headwind for China Domestic Gaming
“in China, there was no phenomenon of the majority of the population working from home for many months.
…we don't see a "reopening headwind" for our game business.”

14 | Cloud Optimisation - Over was painful but now better
“optimization shift is largely over..business is actually in a much more sustainable and much higher quality state.
…product mix that is focused on high margin, high value add as well as self-developed and recurring revenue.”

15 | Looking to add Gen-AI
“generative AI, it's definitely natural…to incorporate some of these technologies into our flagship products like Weixin and QQ and we can actually improve the efficiency of the user experience.”
16 | LLM Investments as initial upfront fixed costs that has barriers to entry for smaller players
“LLM are different as a fixed cost…fixed cost with our revenue, you can see it's a sizable number. But it's not a number that has consequence of strong margins.”