Profits Slide at China’s Tencent as 2023 Revenues Hold Steady
variety.comPatrick Frater Asia Bureau Chief China’s social media, games and video giant Tencent saw 2023 revenues advance by 10% to $84.6 billion (RMB609 billion).
But its net profits slid to $16.3 billion (RMB118 billion), down from $26.3 billion a year earlier. The group is directly affected by weakness in the mainland Chinese economy, which has recovered only slowly since the end of the COVID pandemic, and by ongoing regulatory concerns.
That said, online advertising grew to $14 billion (RMB101 billion), at a 22% rate that outstripped the economy. Games, normally a pillar, was weak both at home and abroad.
Over the last year, China’s games industry regulators have appeared to waver, first seeking to restrict spending in games, then relenting and issuing more approvals.
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