Tencent reported a weaker performance in 2022, despite a rise in revenue and profit in the fourth quarter, but said it was ready to drive and benefit from a rebound in China's economy.
In a sign of confidence the Shenzhen, China-based internet and technology company raised its final dividend by 50% to HK$2.40 from HK$1.60 a year before.
The company said in the fourth quarter, revenue inched up 0.5% to CNY144.95bn, (around US$21.05bn), from CNY144.19bn.
Net profit rose 12% to CNY106.90bn from CNY95.71bn and diluted earnings per share rose to CNY10.98 from CNY9.79.
Value-added services revenue, which consists of the virtual goods the company offers, mainly online video games for smartphones and desktops, fell 2.1% to CNY70.42bn but online advertising revenue jumped 15% to CNY24.66bn.
Fourth quarter fintech and business services revenue fell 1.5% to CNY47.24bn, as Covid outbreaks hit its commercial payment business was hit by Covid-19 outbreaks, which caused a "significant slowdown" in volume growth.
But for the year as whole revenue and profit fell. Revenue declined 1.0% to CNY554.55bn from CNY560.12 the year before while net profit dipped 17% to CNY188.71bn from CNY227.81bn. Diluted EPS slipped to CNY19.34 from CNY23.16.
Chair & Chief Executive Officer Ma Huateng said: “During 2022, we increased our business efficiency, sharpened our focus on core activities, and developed new services and revenue lines including Video Accounts and international games. These changes position us to benefit from, and contribute to, a rebound in China economic growth which our users' activity suggests is now underway."
Tencent plans to invest in its artificial intelligence abilities and cloud infrastructure, seeking to enhance its existing products and services and explore new launches.
Shares in Tencent closed up 1.1% at HK$347.20 in Hong Kong on Wednesday.