Tencent has reported its financial performance for 2023 Q1. The company’s revenue reached 150 billion yuan (about US$ 21 billion), up 11 percent year on year. Net profit stood at 32.5 billion yuan, a 27 percent increase from the same period last year.

Key growth areas for Tencent included gaming, advertising, and business services.

In the gaming sector, overseas growth was strong, driven by popular titles such as “Honor of Kings” and “VALORANT.”

The advertising division benefited from the recovery of domestic consumption.

WeChat now has 1.3 billion users, while QQ reaches 600 million. Video accounts on WeChat showed remarkable growth.

If the money comes in through games and ads, it goes out through business services with strong investment in AI and cloud infrastructure.

Tencent has reduced costs through widespread layoffs, leading to a substantial drop in the salary bill.