The Chinese technology giant Tencent posted an attributable net profit of 26,171 million yuan (3,290 million euros) in the second quarter, which is equivalent to an advance of 40.6% compared to the earnings of the same period of the previous year, as reported by the multinational in the accounts published this Wednesday. In the first half of the year as a whole, the company’s result increased by 24% compared to the same period last year and stood at 52,009 million yuan (6,526 million euros).
Income between April and June amounted to 149,208 million yuan (18,759 million euros), 11.3% more than a year earlier. By business areas, the video game and social media division obtained revenues of 74,211 million yuan (9,330 million euros), 3.5% more than in the same period of 2023; the advertising business had a turnover of 25,003 million yuan (3,143 million euros), 34% more, while the fintech division entered 15.2% more in the quarter, up to 48,635 million yuan (6,114 million euros).
Tencent has developed the most popular mobile app in China: WeChat, which has multiple functions: talk, pay a bill, order food or order a taxi. “Weixin (WeChat) user engagement increased healthily and usage time nearly doubled from last year,” the company details. In addition, the multinational has also developed well-known video games such as Fortnite and League of Legends. However, it did not get rid of the crisis that shook the technology companies and in November 2022 it announced that throughout that year it had dispensed with around 7,000 workers. Thus, its general and administrative expenses fell by 3%, to 25,400 million in the second quarter of 2023 “mainly due to the reduction in personnel costs, including compensation expenses,” they conclude.
Financial costs increased by 82% between April and June “due to exchange rate fluctuations, as well as higher interest expenses.” In the second quarter of this year they amounted to 3,291 million yuan, compared to 1,809 in 2022.
“During the second quarter of 2023, we maintained a strong revenue growth rate, along with a trend toward higher-quality revenue streams with better margins,” said Ma Huateng, Chairman and CEO of Tencent. “We achieved remarkably fast growth in the advertising business, benefiting from the implementation of artificial intelligence in our advertising platform and the monetization of video accounts,” he added.
At the end of the quarter, the number of monthly active users of all the company’s platforms was 1,327 million, which represents a growth of 8 million users (1% more) compared to the previous quarter.
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