For Immediate Release

TENCENT ANNOUNCES 2023 ANNUAL AND FOURTH QUARTER RESULTS
High Quality Revenue Streams Drove Gross Profit Growth of 23% in FY2023
Increasing Dividend Per Share by 42%; More Than Doubling Share Repurchase to Over HKD100
Billion in 2024
Hong Kong, March 20, 2024 – Tencent Holdings Limited (HKEX: 00700 (HKD Counter) and 80700 (RMB
Counter), “Tencent” or the “Company”), a world-leading Internet and technology company in China, today
announced the audited consolidated results for the year ended December 31, 2023 (“FY2023”) and theunaudited consolidated results for the fourth quarter (“4Q2023”).
Mr. Ma Huateng, Chairman and CEO of Tencent, said, “In 2023, we achieved breakthroughs in a number of
products and services, as Video Accounts’ total user time spent more than doubled, enhancements to ouradvertising AI model significantly improved our targeting performance, and international contribution to ourgames revenue reached a record 30%. These developments drove high-quality revenue streams which
fuelled our gross profit growth of 23%, and supported our plan to step up capital returns to shareholders.
Tencent Hunyuan developed into a top-tier foundation model with superior performance in numericalreasoning, logical inference, and multi-turn conversations. In addition, we actively sought to leverage ourtechnology and platform to create value for society through initiatives such as our digital philanthropy platform,
one of the largest of its kind in the world, whose 99 Giving Day event raised a record RMB3.8 billion in public
donations.”

FY2023 Financial Highlights
Revenues: +10% YoY, gross profit: +23% YoY, non-IFRS1 profit attributable to equity holders of theCompany: +36% YoY
▪
▪
▪

▪

Total revenues were RMB609.0 billion (USD86.0 billion2), up 10% over 2022.
Gross profit was RMB293.1 billion (USD41.4 billion), up 23% YoY.
On a non-IFRS basis, which is intended to reflect core earnings by excluding certain one-time and/or
non-cash items:
Operating profit* was RMB191.9 billion (USD27.1 billion), up 34% YoY. Operating margin*
increased to 32% from 26% last year.
Profit for the year was RMB161.7 billion (USD22.8 billion), up 36% YoY. Net margin increased
to 27% from 21% last year.
Profit attributable to equity holders of the Company for the year was RMB157.7 billion(USD22.3 billion), up 36% YoY.
Basic earnings per share were RMB16.678. Diluted earnings per share were RMB16.320.
On an IFRS basis:
Operating profit* was RMB160.1 billion (USD22.6 billion), up 44% YoY. Operating margin*
increased to 26% from 20% last year.

Non-IFRS adjustments excludes share-based compensation, M&A related impact such as net (gains)/losses from investee
companies, amortisation of intangible assets, impairment provisions/(reversals), SSV & CPP, income tax effects and others
2
Figures stated in USD are based on USD1 to RMB7.0827* Certain items have been reclassified from above to below the operating profit line, and the comparative figures for prior periods
have been restated accordingly. Please refer to the earnings announcement for details.
1Page 1 of 11

-Profit for the year was RMB118.0 billion (USD16.7 billion), down 37% YoY. Net margin decreased
to 19% from 34% last year.
Profit attributable to equity holders of the Company for the year was RMB115.2 billion (USD16.3
billion), down 39% YoY.
Basic earnings per share were RMB12.186. Diluted earnings per share were RMB11.887.

FY2023 Business Review and OutlookVideo Accounts’ total user time spent more than doubled, driven by DAU and time spent per user,
benefitting from enhanced recommendation algorithms. We provided more monetisation support forVideo Accounts creators, such as facilitating merchandise sales through live streaming, and matchingcreators with brands for marketing campaigns.

Mini Games’ gross receipts increased over 50%, with Mini Games representing the leading casual gameplatform in China.



QQ Channels enhanced interest-based user interactions across categories such as games, lifestyle,and knowledge-based content.



Tencent Video and Tencent Music extended their leadership in the long-form video and musicstreaming industries, with 117 million3 video subscriptions and 107 million4 music subscriptions.



The number of Tencent mobile and PC “major hit games” in China surpassing average quarterly DAU
of 5 million for mobile or 2 million for PC, and generating over RMB4 billion annual gross receipts(thresholds which we view as indicative of a major and enduring hit), increased from 6 in 2022 to 8 in
2023.



We upgraded our AI-powered advertising technology platform, which significantly enhanced ourtargeting accuracy and thus advertising revenue.

We strengthened our payment compliance capabilities, enhanced Mini Program-based transaction tools
and upgraded cross-border payment experience.



WeCom and Tencent Meeting deployed generative AI-powered functionalities and increased theirmonetisation.



We launched our proprietary foundation model, Tencent Hunyuan, and scaled it up to trillion parameterscale, utilising a Mixture of Experts architecture.

We returned substantial capital to shareholders in 2023 through payment of cash dividend, share repurchases,
and settlement of distribution in specie. We have proposed to increase our annual dividend in respect of
the year ended 31 December 2023 by 42%, to HKD3.40 per share5 (equivalent to approximately HKD32
billion), and we intend to at least double the size of our share repurchases, from approximately HKD49
As at 31 December 2023
The average number of subscriptions as of the last day of each month during 4Q2023
5
Subject to shareholders’ approval at the 2024 AGM
3
4Page 2 of 11billion in 2023 to over HKD100 billion in 2024.
FY2023 Environmental, Social and Governance (“ESG”) Initiatives
Harnessing our technology and platform, we continue to create social value for our users, partners and thesociety at large.


Our digital philanthropy platform helped raise a record RMB3.8 billion in public donations during the
99 Giving Day campaign, up 15% year-on-year.



Our New Cornerstone Investigator Program has supported 104 scientists, contributing to thedevelopment of basic science research.



We made progress in our decarbonisation journey by applying our fourth-generation data centre
technology to reduce emissions and increasing the adoption of renewable energy.



In August 2023, we joined the United Nations Global Compact (“UNGC”), demonstrating ourcommitment to integrating UNGC’s principles into our strategy, culture and day-to-day operations, andsupporting UNGC’s Sustainable Development Goals.

4Q2023 Financial Highlights
Revenues: +7% YoY, gross profit: +25% YoY, non-IFRS profit attributable to equity holders of theCompany: +44% YoY
▪
▪
▪

▪

▪
▪
6

Total revenues were RMB155.2 billion (USD21.9 billion), up 7% over the fourth quarter of 2022 (“YoY”).
Gross profit was RMB77.6 billion (USD11.0 billion), up 25% YoY.
On a non-IFRS basis, which is intended to reflect core earnings by excluding certain one-time and/or
non-cash items:
Operating profit* was RMB49.1 billion (USD6.9 billion), up 35% YoY. Operating margin*
increased to 32% from 25% last year.
Profit for the period was RMB43.8 billion (USD6.2 billion), up 43% YoY. Net margin increased
to 28% from 21% last year.
Profit attributable to equity holders of the Company for the quarter was RMB42.7 billion(USD6.0 billion), up 44% YoY.
Basic earnings per share were RMB4.537. Diluted earnings per share were RMB4.443.
On an IFRS basis:- Operating profit* was RMB41.4 billion (USD5.8 billion), up 42% YoY. Operating margin* increased
to 27% from 20% last year.
- Profit for the period was RMB27.8 billion (USD3.9 billion), down 74% YoY. Net margin decreased
to 18% from 74% last year.
- Profit attributable to equity holders of the Company for the quarter was RMB27.0 billion (USD3.8
billion), down 75% YoY.
- Basic earnings per share were RMB2.873. Diluted earnings per share were RMB2.807.
Total cash were RMB403.3 billion (USD56.9 billion) and free cash flow was RMB34.2 billion (USD 4.8
billion), up 48% YoY. Net cash position totalled RMB54.7 billion (USD 7.7 billion).
Fair value of our shareholdings6 in listed investee companies (excluding subsidiaries) totalled
Including those held via special purpose vehicles, on an attributable basis

Page 3 of 11

▪

RMB550.7 billion (USD77.8 billion) and the carrying book value of our unlisted investee companies was
RMB337.3 billion (USD47.6 billion).
During the fourth quarter, the Company repurchased approximately 56.3 million shares on the Hong
Kong Stock Exchange for a consideration of approximately RMB15.7 billion.

Operating Metrics
As at
31 December
2023
Combined MAU of
Weixin and WeChat

As at
YearAs at
31 December
on-year 30 September
2022change2023(in millions, unless specified)

Quarter-onquarterchange

1,343

1,313

2%

1,336

0.5%

Mobile device MAU of QQ

554

572

-3%

558

-0.7%

Fee-based VAS registeredsubscriptions

248

234

6%

245

1%

4Q2023 Business Review
Revenues from VAS decreased by 2% YoY to RMB69.1 billion for the fourth quarter of 2023. International
Games revenues increased by 1% YoY to RMB13.9 billion, or declined by 1% YoY when excluding currency
fluctuations, reflecting Supercell repositioning some of its games. PUBG Mobile saw a strong upturn inrevenue, while VALORANT maintained robust growth. Domestic Games revenues declined by 3% YoY to
RMB27.0 billion due to decreased contributions from Honour of Kings and Peacekeeper Elite, partially offset
by contributions from our recently launched games, such as VALORANT and Lost Ark. Social Networks
revenues decreased by 2% YoY to RMB28.2 billion, due to lower revenues from music-related and gamesrelated live streaming services, partially mitigated by revenue growth from music subscriptions and Mini
Games platform service fees.
Revenues from Online Advertising were RMB29.8 billion for the fourth quarter of 2023, up 21% YoY, propelledby advertising demand for Video Accounts, as well as the ongoing upgrade of our advertising platform. All
categories except for automotive saw a year-on-year increase in advertising spending with us, withparticularly notable growth in Internet services, healthcare and consumer goods categories.
Revenues from FinTech and Business Services increased by 15% YoY to RMB54.4 billion for the fourth
quarter of 2023. FinTech Services sustained double-digit year-on-year growth due to the growth in commercial
payment activities, as well as the expansion of wealth management services and consumer loan services.
Business Services achieved YoY growth of around 20%, mainly driven by increased eCommerce technology
service fees within Video Accounts, alongside moderate revenue growth in cloud services.
For other detailed disclosure, please refer to our website https://www.tencent.com/en-us/investors.html, or follow
us via Weixin Official Account (Weixin ID: Tencent_IR):

Page 4 of 11###

About Tencent
Tencent uses technology to enrich the lives of Internet users.
Our communication and social services, Weixin and QQ, connect users with each other and with digitalcontent and services, both online and offline, making their lives more convenient. Our targeted advertising
service helps advertisers reach out to hundreds of millions of consumers in China. Our FinTech and businessservices support our partners’ business growth and assist their digital upgrade.
Tencent invests heavily in talent and technological innovation, actively promoting the development of theInternet industry. Tencent was founded in Shenzhen, China, in 1998. Tencent has been listed on the Main
Board of the Stock Exchange of Hong Kong since 2004.
Investor contact: IR@tencent.com
Media contact: GC@tencent.com
Non-IFRS Financial Measures
To supplement the consolidated results of the Group prepared in accordance with IFRS, certain additional non-IFRS
financial measures (in terms of operating profit, operating margin, profit for the period, net margin, profit attributable toequity holders of the Company, basic EPS and diluted EPS) have been presented in this press release. These unaudited
non-IFRS financial measures should be considered in addition to, not as a substitute for, measures of the Group’s
financial performance prepared in accordance with IFRS. In addition, these non-IFRS financial measures may be defineddifferently from similar terms used by other companies.
The Company’s management believes that the non-IFRS financial measures provide investors with usefulsupplementary information to assess the performance of the Group’s core operations by excluding certain non-cash
items and certain impact of investment-related transactions. In addition, non-IFRS adjustments include relevant nonIFRS adjustments for the Group’s major associates based on available published financials of the relevant major
associates, or estimates made by the Company’s management based on available information, certain expectations,assumptions and premises.

Forward-Looking Statements
This press release contains forward-looking statements relating to the business outlook, estimates of financial
performance, forecast business plans and growth strategies of the Company. These forward-looking statements are
based on information currently available to the Company and are stated herein on the basis of the outlook at the time ofthis press release. They are based on certain expectations, assumptions and premises, some of which are subjective
or beyond our control. These forward-looking statements may prove to be incorrect and may not be realised in the future.
Underlying these forward-looking statements are a lot of risks and uncertainties. In light of the risks and uncertainties,
the inclusion of forward-looking statements in this press release should not be regarded as representations by the Boardor the Company that the plans and objectives will be achieved, and investors should not place undue reliance on suchstatements.

Page 5 of 11

CONSOLIDATED INCOME STATEMENTRMB in millions, unless specified
Unaudited
4Q2023609,015
298,375
101,482
203,763
5,395(315,906)
293,10948%(34,211)(103,525)
4,701

2022
Restated*
554,552
287,565
82,729177,064
7,194(315,806)
238,74643%(29,229)(106,696)
8,006*

Revenues
VAS
Online Advertising
FinTech and Business Services
OthersCost of revenues
Gross profit
Gross margin
Selling and marketing expenses
General and administrative expenses
Other gains/(losses), net
Operating profit
Operating margin
Net gains/(losses) from investments
and others
Interest income
Finance costs
Share of profit/(loss) of associates andjoint ventures, net
Profit before income tax
Income tax expense
Profit for the period
Net margin
Attributable to:Equity holders of the Company
Non-controlling interests

155,196
69,07929,79454,3791,944(77,632)
77,56450%(10,971)(27,175)
1,983
41,401
27%

29,163*20%*

160,07426%

110,827*
20%*(6,730)3,917(3,543)85,084*
2,582*(3,658)(6,090)13,808(12,268)

116,287*
8,592*(9,352)

2,463
37,508(9,658)27,85018%(1,692)
111,479(4,575)
106,90474%

5,800
161,324(43,276)
118,048
19%(16,129)
210,225(21,516)
188,70934%

27,025825

106,268
636

115,216
2,832

188,243466

Non-IFRS operating profit
Non-IFRS profit attributable to equity
holders of the Company

49,13536,424*

191,886

143,203*

42,681

29,711

157,688

115,649

2.873
2.807

11.17310.97712.186
11.88719.75719.341

Earnings per share for profit
attributable to equity holders of
the Company(in RMB per share)- basic- diluted*

Audited2023

4Q2022
Restated*
144,954
70,417
24,66047,244
2,633(83,132)
61,822
43%(6,115)(27,314)770*

Certain items have been reclassified from above to below the operating profit line, and the comparative figures for prior periods
have been restated accordingly. Please refer to the earnings announcement for details.

Page 6 of 11

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
RMB in millions, unless specified

Profit for the year
Other comprehensive income, net of tax:
Items that may be subsequently reclassified to profit or loss
Share of other comprehensive income of associates and joint ventures
Transfer of share of other comprehensive income to profit or loss upon disposal
and deemed disposal of associates and joint ventures
Transfer to profit or loss upon disposal of financial assets at fair value throughother comprehensive income
Net gain/(losses) from changes in fair value of financial assets at fair value
through other comprehensive income
Currency translation differences
Other fair value (losses)/gains, net
Items that will not be subsequently reclassified to profit or loss
Share of other comprehensive income of associates and joint ventures
Net losses from changes in fair value of assets held for distribution
Net gains/(losses) from changes in fair value of financial assets at fair value
through other comprehensive income
Currency translation differences
Total comprehensive income for the year
Attributable to:Equity holders of the Company
Non-controlling interests

Audited2023
2022
118,048
188,709

(176)

1,479

(9)

(129)

-

13

59
13,328(3,581)(52)
18,732
5,457(561)(29,991)937(6,102)

11,142(1,077)(10,866)
107,182(148,686)(794)(129,145)
59,564102,130
5,052

60,699(1,135)OTHER FINANCIAL INFORMATIONRMB in millions, unless specified
Unaudited

Audited

4Q2023

4Q2022

2023

2022

EBITDA (a)53,98344,002

214,381

164,037

Adjusted EBITDA (a)59,49449,606

235,454

188,986

Adjusted EBITDA margin (b)

38%

34%

39%

34%

Interest and related expenses

3,015

2,826

11,885

9,985

Net cash/(debt)(c)54,740(14,832)

54,740(14,832)

Capital expenditures (d)

7,524

5,651

23,89318,014

Note:
(a)

(b)
(c)
(d)

EBITDA is calculated as operating profit minus other gains/(losses), net, and adding back depreciation of property, plant and equipment, investment
properties as well as right-of-use assets, and amortisation of intangible assets and land use rights. Adjusted EBITDA is calculated as EBITDA plus equitysettled share-based compensation expenses.
Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenues.
Net cash/(debt) represents period end balance and is calculated as cash and cash equivalents, plus term deposits and others, minus borrowings andnotes payable.
Capital expenditures consist of additions (excluding business combinations) to property, plant and equipment, construction in progress, investment
properties, land use rights and intangible assets (excluding long-form video and music content, game licences and other content).

Page 7 of 11

CONSOLIDATED STATEMENT OF FINANCIAL POSITIONRMB in millions, unless specified
Audited
As at December 31
2023

2022

Property, plant and equipment

53,232Land use rights

17,17953,97818,046

Right-of-use assets

20,464

22,524

Construction in progress

13,5839,229

Investment properties

570

559

Intangible assets

177,727

161,802

Investments in associates

253,696

246,043

Investments in joint ventures

7,969

6,672

211,145

206,085

213,951
28,439185,247
36,752Other financial assets

2,527

6,987

Deferred income tax assets

29,01729,882

Term deposits

29,301

28,336

1,058,800

1,012,142

456

2,333

Accounts receivable

46,60645,467

Prepayments, deposits and other assets

88,411

76,685

Other financial assets

5,949

1,278

Financial assets at fair value through profit or loss

14,90327,963

Term deposits

185,983

104,776

Restricted cash

3,818

2,783

Cash and cash equivalents

172,320

156,739

Assets held for distribution-

147,965

518,446

565,989

1,577,246

1,578,131

ASSETS
Non-current assets

Financial assets at fair value through profit or loss
Financial assets at fair value through othercomprehensive income
Prepayments, deposits and other assets

Current assets
Inventories

Total assets

Page 8 of 11

CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)
RMB in millions, unless specified
Audited
As at December 31
2023
EQUITY
Equity attributable to equity holders of the Company
Share capital
Share premium
Treasury shares
Shares held for share award schemes
Other reserves
Retained earnings

2022

37,989(4,740)(5,350)(33,219)
813,91162,418(1,868)(4,226)(40,914)705,981808,591

721,391

Non-controlling interests

65,09061,469Total equity

873,681782,860

LIABILITIES
Non-current liabilities
Borrowings
Notes payable
Long-term payables
Other financial liabilities
Deferred income tax liabilities
Lease liabilities
Deferred revenue

155,819
137,101
12,1698,781
17,635
16,468
3,435

163,668
148,669
9,067
5,574
12,162
18,424
3,503

351,408

361,067

100,948
76,59541,537
14,161
17,664
4,372
4,558
6,154
86,168-92,381
61,13911,58010,446
13,488
4,698
3,937
6,354
82,216
147,965

352,157

434,204

703,565

795,271

1,577,246

1,578,131

Current liabilities
Accounts payable
Other payables and accruals
Borrowings
Notes payable
Current income tax liabilities
Other tax liabilities
Other financial liabilities
Lease liabilities
Deferred revenue
Dividends payable for distribution in specie

Total liabilities
Total equity and liabilities

Page 9 of 11

RECONCILIATIONS OF IFRS TO NON-IFRS RESULTS
Adjustments
Asreported

RMB in millions,
unless specified

Share-based
compensation(a)Net(gains)/losses
from investee
companies (b)Amortisation of
intangible assets(c)Impairment
provisions/(reversals) (d)SSV &CPP (e)Others (f)Incometax effects(g)

Non-IFRS

Year ended December 31, 2023
Operating profit

160,074

22,782

-

5,019

-

998

3,013

-

191,886

Profit for the year
Profit attributable toequity holders

118,048

27,766(6,170)10,269

8,123

3,790

3,012

(3,104)

161,734

115,216

27,100(6,024)

9,462

8,004

3,790

3,012

(2,872)

157,688

Operating margin

26%

Net margin

19%

32%
27%
Year ended December 31, 2022

Operating profit (Restated) *110,827

26,248

-

5,197

-

726

205

-

143,203

Profit for the year
Profit attributable toequity holders

188,70933,311(164,698)

11,81848,004

5,763

2,125

(5,839)119,193

188,243

32,651(164,840)

10,88046,326

5,763

2,125

(5,499)115,649

Operating margin (Restated)
Net margin
Note:
(a)
(b)
(c)
(d)
(e)
(f)
(g)

*

20%

26%

34%

21%

Including put options granted to employees of investee companies on their shares and shares to be issued under investee companies’ share-based incentive plans which can be acquired by the Group, and other incentives
Including net (gains)/losses on deemed disposals/disposals of investee companies, fair value changes arising from investee companies, and other expenses in relation to equity transactions of investee companies
Amortisation of intangible assets arising from acquisitions
Mainly including impairment provisions/(reversals) for associates, joint ventures, goodwill and other intangible assets arising from acquisitions
Mainly including donations and expenses incurred for the Group’s Sustainable Social Value and Common Prosperity Programme ("SSV & CPP”) initiatives
Primarily non-recurring compliance-related costs and expenses incurred for certain litigation settlements of the Group and/or arising from investee companies
Income tax effects of non-IFRS adjustments*

Certain items have been reclassified from above to below the operating profit line, and the comparative figures for prior periods have been restated accordingly. Please refer to the earnings
announcement for details

Page 10 of 11

RECONCILIATIONS OF IFRS TO NON-IFRS RESULTS
Adjustments

RMB in millions,
unless specifiedAs
reported

Share-based
compensation(a)Net(gains)/losses
from investee
companies (b)Amortisation of
intangible assets(c)Impairment
provisions/(reversals) (d)SSV &CPP (e)Others (f)Incometax effects(g)

Non-IFRS

Three months ended 31 December 2023
Operating profit

41,401

5,732

-

1,564

-

437

1

-

49,135

Profit for the period
Profit attributable toequity holders

27,850

6,646

(94)

2,960

5,705

1,594

1

(829)

43,83327,025

6,512

(55)

2,719

5,650

1,594

1

(765)

42,681

Operating margin27%

Net margin

18%

32%
28%
Three months ended 30 September 2023

Operating profit (Restated) *44,348

5,655

-

1,434

-

231

-

-

51,668

Profit for the period
Profit attributable toequity holders

36,781

6,948

(565)

2,666

346

301

-

(640)

45,83736,182

6,833

(583)

2,458

309

301

-

(579)

44,921

Operating margin (Restated) *29%

Net margin

24%

33%
30%
Three months ended 31 December 2022

Operating profit (Restated) *Profit for the period
Profit attributable toequity holders

29,163

5,680

-

1,241

-

326

14

-

36,424

106,904

7,217(107,955)

2,601

23,7001,600

206(3,717)30,556106,268

7,124(107,928)

2,420

23,6931,600

206(3,672)

29,711

Operating margin (Restated) *

20%

25%

Net margin

74%

21%

Note:
(a)
(b)
(c)
(d)
(e)
(f)
(g)

Including put options granted to employees of investee companies on their shares and shares to be issued under investee companies’ share-based incentive plans which can be acquired by the Group, and other incentives
Including net (gains)/losses on deemed disposals/disposals of investee companies, fair value changes arising from investee companies, and other expenses in relation to equity transactions of investee companies
Amortisation of intangible assets arising from acquisitions
Mainly including impairment provisions/(reversals) for associates, joint ventures, goodwill and other intangible assets arising from acquisitions
Mainly including donations and expenses incurred for the Group’s Sustainable Social Value and Common Prosperity Programme ("SSV & CPP”) initiatives
Primarily non-recurring compliance-related costs and expenses incurred for certain litigation settlements of the Group and/or arising from investee companies
Income tax effects of non-IFRS adjustments*

Certain items have been reclassified from above to below the operating profit line, and the comparative figures for prior periods have been restated accordingly. Please refer to the earnings
announcement for details

Page 11 of 11