Tencent marks first YoY non-IFRS increase in Q3

Tencent, the Chinese gaming and media giant, stemmed the bleeding in the third quarter, marking its first year-on-year growth in its non-IFRS earnings after about 12 months.

Photo credit: Tencent

Tencent’s Q3 2022 operating profit was at US$5.8 billion, up slightly from the US$5.75 billion it recorded a year earlier. This is on a non-IFRS basis, which reflects core earnings by excluding certain one-time and non-cash items.

On the same basis, profit attributable to the company’s equity holders saw a slight increase of 2% year on year to US$4.5 billion.

Ma Huateng, chair and CEO of Tencent, said the quarter marks the first time that the company has achieved year-on-year growth in its non-IFRS earnings after four consecutive quarters of decline.

“We will distribute the large majority of our Meituan shareholding, which has generated significant returns, both strategically and financially,” he added.

Tencent also logged US$19.7 billion in revenue for the quarter, a 2% dip compared to the same quarter in 2021.

Tencent’s value-added services – which include its games, livestreaming, and music products – contributed about US$10.3 billion to the total amount.

Meanwhile, the company’s online advertising arm raked in US$3 billion in revenue, while its fintech and business services generated around US$6.3 billion.

Tencent’s total cash at the end of the period was listed at US$44.5 billion.

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