Tencent Bounces Back On Growth Lane In Q1, Posts Strong Sales Round

Yesterday, Tencent Holdings Ltd TCEHY reported a Q1 2023 revenue increase of 11% Y/Y to ¥150 billion ($21.8 billion).
The company bounced back on the growth lane this quarter, marking the fastest sales growth in over a year, CNBC reported.
Revenues from VAS grew 9% Y/Y to ¥79.3 billion and FinTech and Business Services revenue were up 14% Y/Y to ¥48.7 billion.
International Games revenues rose 25% Y/Y to ¥13.2 billion, led by newly launched games like Goddess of Victory: Nikke and Triple Match 3D and the strong performance of Valorant.
Online Advertising revenue increased 17% Y/Y to ¥21 billion, aided by Video Accounts and an improved mobile ad network.
The combined MAU of Weixin and WeChat rose 2% Y/Y to 1,319 million and the Mobile device MAU of QQ increased 6% Y/Y to 597 million. Meanwhile, Fee-based VAS registered subscriptions declined 5% Y/Y to 226 million.
Adjusted EBITDA rose 25% Y/Y to ¥57.8 billion.
On an IFRS basis, net profit rose 10% Y/Y to ¥25.8 billion.
Total cash stood at ¥370.5 billion ($53.9 billion) at the end of the quarter.
“During the first quarter of 2023, we achieved solid revenue growth as our payment volumes benefitted from, and facilitated, domestic consumption recovery, our games revenue improved, and our advertising revenue sustained rapid growth. Our non-IFRS net profit increased at a faster pace, reflecting a positive revenue mix shift, operational efficiencies, and an easy base period. We are investing in our AI capabilities and cloud infrastructure to embrace the opportunities brought by foundation models, and expect AI to be a growth multiplier that enables us to better serve our users, customers, and society at large," said Mr. Ma Huateng, Chairman and CEO.
Price Action: TCEHY shares closed higher by 1.75% at $44.65 on Wednesday.

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