Investors of Tencent should be breathing a sigh of relief after going through Tencent’s Q4’22 and FY’22 results. The key anchor of Q4’22 is finally a YoY growth spurt that has been absent in the last 2 quarters of 2022 and better profits Source: Tencent 2022 Fourth Quarter and Annual Results Presentation The big picture looks promising. But will the nitty gritty details paint a clearer picture of Tencent’s prospects?

1. Q4’22 Value-added Services down by 2% YoY

Source: Tencent 2022 Fourth Quarter and Annual Results Presentation Value-added services, where Tencent parks its Social Networks and Games business, are down by -2% YoY for Q4’22. It is mainly dragged down by Domestic Games, which got badly affected during the game launch freeze by the Chinese government. The ban lasted as long as 14 months and pretty much impaired Tencent’s performance for 2022. Fortunately, International Games helped to buffer the domestic gaming ban, with the strong performance of Tencent’s key game franchises like League of Legends,