Tencent Holdings (TCEHY) Q4 2023 Earnings Call Transcript

For the period ending December 31, 2023

March 20, 2024 8:00 a.m. ET

Prepared Remarks

Questions and Answers

Call Participants

Prepared Remarks:

Operator

Good day and good evening. Thank you for standing by. Welcome to Tencent Holdings Limited 2023 fourth quarter and annual results announcement webinar. This is Wendy Huang from the Tencent IR team.

At this time, all participants are in a listen-only mode. After management’s presentation, there will be a question and answer session. For participants who dial in by phone, if you wish to ask a question, please press 5 on your telephone to raise your hand. If you are accessing from the Tencent meeting or WeMeet application, please click the Raise Hand button on the bottom left, and please be advised that today’s webinar is being recorded.

Before we start the presentation, we will like to remind you that this includes forward-looking statements which are underlined by a number of risks and uncertainties and may not be realized in the future for various reasons. Information about general market conditions is coming from a variety of sources outside of Tencent.

This presentation also contains some unaudited non-IFRS financial measures that should be considered in addition to but not as a substitute for measures of the group’s financial performance prepared in accordance with IFRS. For a detailed discussion of risk factors and non-IFRS measures, please refer to our disclosure documents on the IR section of our website.

Now let me introduce the management team on the webinar tonight. Our Chairman and CEO, Pony Ma will kick off with a short overview. President Martin Lau will discuss the strategy review, Chief Strategy Officer James Mitchell will provide a business review, and Chief Financial Officer John Lo will conclude with a financial discussion before we open the floor for questions.

I will now pass it to Pony.

Pony Ma

Thank you Wendy. Good evening. Thank you everyone for joining us.

In 2023, we sharpened our strategic focus and achieved substantial progress in our major products following our high quality revenue growth model, notably video accounts total user time spent more than doubled as we enriched our short video content ecosystem. Our mini-cams platform increased gross receipts by over 50% year-on-year. Our number of major hit games in China achieving both high DAU and substantial monetization increased from six in 2022 to eight in 2023 and in connection with games achieved double digit revenue growth and rose to 30% of games revenue.