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The Chinese digital giant Tencent is already at 41% in 2021

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Shanghai (China), March 23 (EFE).- The technology company Tencent, the largest company by market capitalization in China, increased its net profit in 2021 by 41% to 224,822 million yuan (35,275 million dollars, 32,012 millions of euros).

In the case of results, sent to the Hong Kong Stock Exchange, where it is listed, the firm also reports an advance of 16% in its annual turnover, which reached 560,118 million yuan (87,884 million dollars, 79,767 million euros) .

Tencent assured that “2021 was a challenging year” in which changes were made and measures were taken “that reinforced the company’s long-term sustainability but had the effect of slowing revenue growth.”

Among the segments in which the technology company operates, video games and social networks, which they call “value-added services”, remained the main source of income, although it fell from 55% to 52%.

The turnover from these businesses stood at 291,572 million yuan (45,748 million dollars, 41,517 million euros), which represents an increase of 10% in year-on-year terms.

THE AD AND VIDEO GAMES BUSINESS SLOWS DOWN IN CHINA

Of that amount, 44% came from video games distributed in China, although the growth of this particular line of business was much lower than that of international titles, which invoiced 31% more, although it still represents a much smaller part of the income (15.6%).

The reason that these operations grow less in China is found in the measures promoted by Beijing -and those announced by Tencent on its own initiative under pressure from state media- to combat the addiction of minors to video games.

In fact, the total time that minors spent playing Tencent titles fell by 88% year-on-year during the fourth quarter of 2021, in which the turnover obtained by the technology of the players in that age group contracted a 73%

“We hope to fully assimilate the impact of the measures to protect minors in the second half of 2022,” the company predicted.

Another of its important sources of income, the segment of social networks, reported 8% more: WeChat -developed by Tencent as an alternative to local applications such as WhatsApp, censored by the Chinese authorities- had more than 1,268 million users at the end of December. monthly active users, which means that during 2021 I add about 43.2 million.

Much higher was the growth of other key digital business lines, that of ‘fintech’ and business services, which entered 172,195 million yuan (27,019 million dollars, 24,538 million euros), and 34% more , which allowed it to go from hoarding 27% to 31% of the total billing.

The trajectory of the online advertising segment was different, which lost weight (from 17% to 16%) on the company’s income despite billing 8% more, mainly due to the drop in business with companies in sectors affected by the campaign Beijing regulator such as education, real estate or insurance.

Looking ahead, Tencent believes that the Chinese internet sector “is structurally changing to a healthier mode, characterized by refocusing on user value, innovation and social responsibility”, something for which he assured be “proactively adapting.”

In a separate statement, the board of directors announced the proposal to pay a dividend of 1.6 Hong Kong dollars (0.2 dollars, 0.19 euros) charged to the 2021 financial year.

c) EFE Agency

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