Tencent, which notably owns the popular WeChat application, posted net profit last year down 39% to 115.2 billion yuan (AFP/Jade GAO)
Chinese internet giant Tencent on Wednesday announced annual net profit for 2023 at its lowest level in four years, despite a brief rebound in China’s economy last year.
The group, which notably owns the popular WeChat application, posted net profit last year down 39%, to 115.2 billion yuan (14.7 billion euros) compared to 188.2 billion yuan in 2022.
Net profit for the last quarter of 2023, also presented on Wednesday, fell 75% year-on-year, to 27 billion yuan (3.4 billion euros).
On the other hand, Tencent’s turnover for 2023 is up 10% year-on-year, to 609.1 billion yuan (78 billion euros).
After years of meteoric growth in one of the most dynamic and connected markets in the world, internet companies in China have been under pressure from the authorities since 2020.
The main tech players have been singled out in terms of competition and personal data, after years of relative laxity, which has destabilized the sector.
Since 2021, the Chinese authorities have also imposed a drastic weekly limit of three hours of online video games on under-18s, to reduce addiction among younger people.
These restrictions had a significant impact on Tencent’s profitability. The world number one in the sector recorded in 2022 the first decline in quarterly turnover in 18 years.
His relations with those in power now seem peaceful.
The authorities are now showing themselves to be more lenient towards a key sector, at a time when the markets remain concerned about the health of the Chinese economy.
Tencent is a key player in tech in its country due to the omnipresence of its WeChat application (messaging, online payment, social network).
It is present on almost all phones in China and serves as a daily means of payment for hundreds of millions of Chinese, in a country where cash is becoming increasingly scarce.
© 2024 AFP
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