Tencent’s Platform and Content Group Achieved Profitability at End of 2022

All companies beneath Tencent‘s Platform and Content Group (PCG) were profitable at the end of 2022, allowing the group to increase its annual profit by several billion yuan, LatePost reported on January 10. The Shenzhen-based tech giant’s PCG was established in 2018, masking a variety of merchandise, together with QQ, Tencent Video, Tencent News, app retailer Yingyongbao, Sogou Input Methods, and extra.

Specifically, Tencent Video’s annual income in 2022 exceeded 10 billion yuan ($1.48 billion), and it started to document earnings in October. Tencent News additionally made earnings within the ultimate quarter of 2022. QQ Browser achieved annual earnings by significantly decreasing promotional prices. In addition, Tencent‘s brief video platform Wesee stopped dropping cash after considerably shrinking its staff and enterprise.

However, profitability is now the important thing indicator to find out whether or not a enterprise unit will proceed. A pair weeks in the past, agency CEO Pony Ma severely criticized varied departments at an annual company-wide assembly. Ma cited Tencent News for instance, saying, “If profitability is not good, it should still be cut.” Tencent News is an info supplier with a historical past of 20 years beneath the PCG, and it has misplaced cash for a few years.

In February 2022, Tencent made a list and classification of all loss-making merchandise, and discovered that greater than 50 merchandise throughout the entire firm have been in a loss state. At that point, as one of the enterprise teams with massive personnel beneath Tencent, PCG’s Tencent Video, Tencent News, QQ Browser, Wesee weren’t worthwhile. The quantity of day by day lively customers of Tencent News dropped to about 40 million, whereas the quantity of paid members of Tencent Video dropped to 120 million within the third quarter of 2022.

Last yr, PCG carried out value reductions and effectivity will increase, resulting in the quantity of staff dropping to lower than 10,000. Meanwhile, the dimensions and price range of every enterprise are significantly decreased, and the prices of core platform building and expertise improvement have declined.

SEE ALSO: Tencent’s WeChat Video Channels Saw Robust Growth in 2022

A supply mentioned that Mark Ren has two key duties after turning into the pinnacle of PCG. One is to combine Tencent‘s content material enterprise, together with novels, animation, movie and tv, platforms, and video games. The different is to make sure that the technical transformation of PCG will obtain outcomes.

Ren used Tencent Video and Tencent News as examples at the PCG year-end convention, saying that the highway of accelerating by sources previously has proved to be unfeasible. “Only by producing content honestly can we attract users. It is possible to survive by doing every link well,” Ren added.

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