For Immediate Release

TENCENT ANNOUNCES 2022 THIRD QUARTER RESULTS

Hong Kong, November 16, 2022 – Tencent Holdings Limited (“Tencent” or the “Company”, 00700.HK), a
leading provider of Internet value-added services in China, today announced the unaudited consolidated
results for the third quarter (“3Q2022”) ended September 30, 2022.

3Q2022 Key Highlights

Revenues: -2% YoY, non-IFRS1 profit attributable to equity holders of the Company: +2% YoY

▪ Total revenues were RMB140.1 billion (USD19.7 billion2), a decrease of 2% over the third quarter of
2021 (“YoY”).
▪ On a non-IFRS basis, which is intended to reflect core earnings by excluding certain one-time and/or
non-cash items:
- Operating profit was RMB40.9 billion (USD5.8 billion), largely stable YoY. Operating margin was
stable at 29%.
- Profit for the period was RMB33.4 billion (USD4.7 billion), an increase of 3% YoY. Net margin
increased to 24% from 23% last year.
- Profit attributable to equity holders of the Company for the quarter was RMB32.3 billion
(USD4.5 billion), an increase of 2% YoY.
- Basic earnings per share were RMB3.381. Diluted earnings per share were RMB3.306.
▪ On an IFRS basis:
- Operating profit was RMB51.6 billion (USD7.3 billion), a decrease of 3% YoY. Operating margin
was stable at 37%.
- Profit for the period was RMB38.8 billion (USD5.5 billion), a decrease of 3% YoY. Net margin was
stable at 28%.
- Profit attributable to equity holders of the Company for the quarter was RMB39.9 billion (USD5.6
billion), an increase of 1% YoY.
- Basic earnings per share were RMB4.187. Diluted earnings per share were RMB4.104.
▪ Total cash were RMB315.6 billion (USD44.5 billion) at the end of the period.

Mr. Ma Huateng, Chairman and CEO of Tencent, said, "During the third quarter, we started to benefit from
the adjustments that we have made to reposition ourselves for a new industry paradigm. We activated in-
feed advertisements in Video Accounts, achieved breakthroughs in international games publishing, and
executed cost efficiency initiatives which re-focused us on core activities and controlled our cost growth. As
a result, we achieved year-over-year growth in non-IFRS earnings after four quarters of decline. Leveraging
our extensive user reach and products such as Mini Programs and Tencent Meeting, we served society in
critical use cases and assisted digitalisation of offline industries. Our resilient businesses, diversified cash
flows, sizeable cash balance and substantial investment portfolio enable us to invest in strategic growth areas
and innovation, while at the same time returning capital to shareholders. We will distribute the large majority
of our Meituan shareholding, which has generated significant returns, both strategically and financially."

1 Non-IFRS adjustments excludes share-based compensation, M&A related impact such as net (gains)/losses from investee
companies, amortisation of intangible assets and impairment provision/(reversals), SSV & CPP, income tax effects and others
2 Figures stated in USD are based on USD1 to RMB7.0998
Page 1 of 11
3Q2022 Financial Review

Revenues from VAS3 decreased by 3% to RMB72.7 billion for the third quarter of 2022 on a year-on-year
basis. International Games revenues increased by 3% to RMB11.7 billion, or 1% in constant currency terms,
amid the ongoing industry normalisation post-COVID. During the quarter, we saw robust growth from
VALORANT, the successful launch of Tower of Fantasy, and an expanded game portfolio at Miniclip, versus
decreased revenue from PUBG Mobile. Domestic Games revenues decreased by 7% to RMB31.2 billion, as
transitional industry challenges resulted in lower paying user counts. By title, we saw decreased revenues
from Honour of Kings and Peacekeeper Elite influenced by the Minor protection measures which took effect
from September 2021 onward, versus incremental revenues from recently launched League of Legends: Wild
Rift, Return to Empire, and League of Legends Esports Manager. Social Networks revenues decreased by
2% to RMB29.8 billion, reflecting increased revenues from our Video Accounts live streaming service and
music subscription service, versus decreased revenues from music- and games-related live streaming
services and our video subscription service.

Revenues from Online Advertising decreased by 5% to RMB21.5 billion for the third quarter of 2022 on a
year-on-year basis. The rate of year-on-year decline narrowed from the previous quarter, driven by the
improvement of games, eCommerce and FMCG categories, as well as the lapping of certain industry-specific
headwinds from 2021. Social and Others Advertising revenues decreased by 1% to RMB18.9 billion,
reflecting continued weakness in certain ad categories, offset by strong demand for our Video Accounts in-
feed ads. Media Advertising revenues decreased by 26% to RMB2.6 billion, reflecting lower advertising
revenue from Tencent Video, primarily due to fewer releases of popular drama series, and to comparison
versus Tokyo Olympic Games in the same period last year.

Revenues from FinTech and Business Services grew by 4% to RMB44.8 billion for the third quarter of 2022
on a year-on-year basis. FinTech Services revenue growth was higher than the previous quarter, benefitting
from the recovery of online and offline commercial payment activities. Business Services revenues decreased
slightly year-on-year, reflecting our continued efforts to scale back loss-making activities.

Other Key Financial Information for 3Q2022

EBITDA was RMB43.1 billion, up 1% YoY. Adjusted EBITDA was RMB48.6 billion, down 1% YoY.
Capital expenditures were RMB2.4 billion, down 66% YoY.
Free cash flow was RMB27.6 billion, up 15% YoY.

As at September 30, 2022, net debt position totalled RMB27.3 billion. Fair value of our shareholdings4 in
listed investee companies (excluding subsidiaries) totalled RMB532.5 billion (USD75.0 billion) and the
carrying value of unlisted investee companies was RMB339.5 billion (USD47.8 billion). During the third
quarter, the Company repurchased approximately 42.8 million shares on the Hong Kong Stock Exchange for
an aggregate consideration of approximately RMB11.8 billion.

3 Mobile games VAS revenues (including mobile games revenues attributable to our Social Networks business) decreased by 4%
year-on-year to RMB41.0 billion, while PC client games revenues was largely stable YoY at RMB11.7 billion for the third quarter of
2022
4 Including those held via special purpose vehicles, on an attributable basis
Page 2 of 11
Operating Metrics

As at As at Year- As at Quarter-on-
30 September 30 September on-year 30 June quarter
2022 2021 change 2022 change
(in millions, unless specified)

Combined MAU of
Weixin and WeChat 1,308.9 1,262.6 3.7% 1,299.1 0.8%

Mobile device MAU of QQ 574.4 573.7 0.1% 568.7 1.0%

Fee-based VAS registered

subscriptions 228.7 235.4 -2.8% 234.7 -2.6%

Business Review and Outlook

Communication and Social

We leveraged the extensive reach of Weixin and the ease of use of Mini Programs to assist the real economy.
Within Mini Programs, we accommodated more commerce and municipal service use cases. Mini Programs’
DAU surpassed 600 million, representing an increase of over 30% year-on-year. Mini Programs’ daily
activations grew even faster, by over 50% year-on-year. We deepened the adoption of Mini Programs in key
commerce categories such as food and beverage, apparel, and department stores, where offline merchants
and brands are increasingly integrating their membership and loyalty programs, and building multi-channel
retailing with Mini Programs. The Health Code Mini Programs helped users verify their health and travel status
with over 320 billion visits year-to-date5.

For QQ, we collaborated with brands, such as Gucci and KFC, to launch their virtual spaces within Super QQ
Show, where they can provide immersive interactions for users. We enabled users to showcase and share
their personalised party rooms with the broader community.

Digital Content

Our fee-based VAS subscriptions decreased by 3% year-on-year to 229 million. For Tencent Video,
subscriptions declined moderately to 120 million due to content scheduling delays, while ARPU increased
due to our initiative in adjusting membership pricing. We released popular self-commissioned drama series
such as Love Like The Galaxy, which ranked first by video views across all online platforms in China6.

Domestic Games

With the implementation of our world-leading Minor7 protection program, we have become fully compliant
with China regulations, and fostered a healthier industry environment. Time spent from Minors decreased by
92% year-on-year, and constituted 0.7% of our Domestic Games’ total time spent in July 2022. We
demonstrated resilience in our adult user base and user engagement, as the industry lapped the impact of
Minor protection measures implemented in September 2021. For September 2022, our combined PC and

5 During the period from 1Q 2022 to 3Q 2022

6 Source: Enlightent, 3Q 2022
7 Players who are aged under 18
Page 3 of 11
mobile games DAU of adult users increased by a double-digit percentage year-on-year growth rate, while
total time spent on our PC and mobile games by adult users increased by a single-digit percentage year-on-
year growth rate.

We are successfully extending the longevity of our leading game franchises, such as CrossFire. We published
the original CrossFire PC game 14 years ago. As a result of our innovation in areas such as its player versus
environment mode and ranked mode, CrossFire remains the leading FPS game on PC in China, achieving a
high single-digit percentage year-on-year growth in its grossing receipts in the first nine months of this year.
In 2015, we published CrossFire Mobile, developed by TiMi Studio Group, which significantly expanded the
franchise’s overall player base in China, and which currently remains one of the top 10 mobile games by time
spent and grossing receipts in China8, even after we launched a number of other successful FPS games.

International Games

In games development, we are extending the success of our market-leading internally developed franchises.
Riot Games applied its experience as the industry pioneer in eSports to drive VALORANT Champions
tournament as the most watched eSports event in the tactical shooter genre 9 , expanding VALORANT’s
fanbase and achieving record-high grossing receipts for the game during the third quarter of 2022. In October
2022, Supercell released the biggest-ever content update for Clash of Clans, boosting user engagement and
in-game consumption. Clash of Clans has generally ranked as the top mobile strategy game internationally
by annual grossing receipts since its launch in 2012, and maintained the number one position year-to-date in
202210.

In games publishing, we achieved breakthroughs with the successful release of two new titles, showcasing
the capabilities of our global brand Level Infinite in localised content marketing and user community
management. Tower of Fantasy, an open world MMORPG we released in August 2022, was the second
highest-ranked among MMORPG by DAU internationally in the quarter 11 . Tower of Fantasy achieved
commercial success in the most competitive markets, ranking first by grossing receipts among MMORPG in
Japan and second in the United States11. On 4 November, 2022, we launched GODDESS OF VICTORY:
NIKKE, a sci-fi RPG shooter with anime graphics, which ranked first by grossing receipts internationally
across all mobile games12. GODDESS OF VICTORY: NIKKE was developed by Shift Up, a Korean studio in
which we are an investor, and demonstrates our ability to support small sized creative teams via our
publishing expertise and resources.

Online Advertising

For Video Accounts, we saw robust advertising demand for in-feed advertisements, particularly from the
FMCG category. Advertising in Video Accounts is complementary and incremental to our existing advertising
revenue. Excluding Video Accounts, Weixin’s advertising revenue grew year-on-year, with rapid growth from
Mini Programs.

FinTech

Our commercial payment volume posted double-digit year-on-year growth during the third quarter of 2022,
with notable expansion in categories such as groceries, dining services and transportation.

8 Source: by time spent according to QuestMobile and by grossing receipts according to data.ai, 3Q 2022
9 Source: by hours watched according to Esports Charts, 3Q 2022
10 Source: data.ai, during the period from 1 January, 2022 to 14 November, 2022
11 Source: data.ai, 3Q 2022
12 Source: data.ai, during the period from 4 November, 2022 to 14 November, 2022

Page 4 of 11
Cloud and Other Business Services

As we scaled back loss-making activities and focused on internally developed products, revenue declined
slightly year-on-year, but gross profit increased significantly year-on-year. We are actively assisting non-
Internet industries to embrace digital transformation, boosting our revenue contributions from historically
offline industries. For example, Tencent Cloud Enterprise enables customers such as banks and
municipalities that prefer to host data on private clouds to integrate and deploy our public cloud products
within their private clouds, meeting their needs for security and compliance. Public sector organisations, such
as hospitals and schools, are increasingly using our key SaaS tools, facilitating efficient collaboration and
online education.

For other detailed disclosure, please refer to our website https://www.tencent.com/en-us/investors.html, or follow
us via Weixin Official Account (Weixin ID: Tencent_IR):

###

Page 5 of 11
About Tencent
Tencent uses technology to enrich the lives of Internet users.

Our communication and social services, Weixin and QQ, connect users with each other and with digital
content and services, both online and offline, making their lives more convenient. Our targeted advertising
service helps advertisers reach out to hundreds of millions of consumers in China. Our FinTech and business
services support our partners’ business growth and assist their digital upgrade.

Tencent invests heavily in talent and technological innovation, actively promoting the development of the
Internet industry. Tencent was founded in Shenzhen, China, in 1998. Shares of Tencent (00700.HK) are
listed on the Main Board of the Stock Exchange of Hong Kong.

Investor contact: IR@tencent.com

Media contact: GC@tencent.com

Non-IFRS Financial Measures

To supplement the consolidated results of the Group prepared in accordance with IFRS, certain additional non-IFRS
financial measures (in terms of operating profit, operating margin, profit for the period, net margin, profit attributable to
equity holders of the Company, basic EPS and diluted EPS), have been presented in this press release. These unaudited
non-IFRS financial measures should be considered in addition to, not as a substitute for, measures of the Group’s
financial performance prepared in accordance with IFRS. In addition, these non-IFRS financial measures may be defined
differently from similar terms used by other companies.

The Company’s management believes that the non-IFRS financial measures provide investors with useful
supplementary information to assess the performance of the Group’s core operations by excluding certain non-cash
items and certain impact of investment-related transactions. In addition, non-IFRS adjustments include relevant non-
IFRS adjustments for the Group’s major associates based on available published financials of the relevant major
associates, or estimates made by the Company’s management based on available information, certain expectations,
assumptions and premises.

Forward-Looking Statements
This press release contains forward-looking statements relating to the business outlook, estimates of financial
performance, forecast business plans and growth strategies of the Company. These forward-looking statements are
based on information currently available to the Company and are stated herein on the basis of the outlook at the time of
this press release. They are based on certain expectations, assumptions and premises, some of which are subjective
or beyond our control. These forward-looking statements may prove to be incorrect and may not be realised in the future.
Underlying these forward-looking statements are a lot of risks and uncertainties. In light of the risks and uncertainties,
the inclusion of forward-looking statements in this press release should not be regarded as representations by the Board
or the Company that the plans and objectives will be achieved, and investors should not place undue reliance on such
statements.

Page 6 of 11
CONSOLIDATED INCOME STATEMENT
RMB in millions, unless specified

Unaudited Unaudited
3Q2022 3Q2021 3Q2022 2Q2022
Revenues 140,093 142,368 140,093 134,034
VAS 72,727 75,203 72,727 71,683
Online Advertising 21,443 22,495 21,443 18,638
FinTech and Business Services 44,844 43,317 44,844 42,208
Others 1,079 1,353 1,079 1,505
Cost of revenues (78,110) (79,621) (78,110) (76,167)
Gross profit 61,983 62,747 61,983 57,867
Gross margin 44% 44% 44% 43%
Interest income 2,328 1,703 2,328 1,945
Other gains, net 20,886 22,984 20,886 4,420
Selling and marketing expenses (7,124) (10,435) (7,124) (7,932)
General and administrative expenses (26,480) (23,862) (26,480) (26,233)
Operating profit 51,593 53,137 51,593 30,067
Operating margin 37% 37% 37% 22%
Finance costs, net (1,950) (1,942) (1,950) (1,809)
Share of profit/(loss) of associates and
joint ventures, net (3,697) (5,668) (3,697) (4,460)
Profit before income tax 45,946 45,527 45,946 23,798
Income tax expense (7,104) (5,452) (7,104) (4,568)
Profit for the period 38,842 40,075 38,842 19,230
Net margin 28% 28% 28% 14%
Attributable to:
Equity holders of the Company 39,943 39,510 39,943 18,619
Non-controlling interests (1,101) 565 (1,101) 611

Non-IFRS profit attributable to equity

holders of the Company 32,254 31,751 32,254 28,139

Earnings per share for profit

attributable to equity holders of
the Company
(in RMB per share)
- basic 4.187 4.143 4.187 1.951
- diluted 4.104 4.074 4.104 1.915

Page 7 of 11
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
RMB in millions, unless specified

Unaudited
3Q2022 3Q2021
Profit for the period 38,842 40,075
Other comprehensive income, net of tax:
Items that may be subsequently reclassified to profit or loss
Share of other comprehensive income of associates and joint ventures 948 (157)
Transfer of share of other comprehensive income to profit or loss upon
disposal and deemed disposal of associates and joint ventures 42 -
Net losses from changes in fair value of financial assets at fair value
through other comprehensive income (8) -
Currency translation differences 5,809 (4,607)
Other fair value gains, net 1,830 133
Items that will not be subsequently reclassified to profit or loss
Share of other comprehensive income of associates and joint ventures 503 (16)
Net losses from changes in fair value of financial assets at fair value
through other comprehensive income (26,433) (36,411)
Currency translation differences 2,245 (130)
(15,064) (41,188)
Total comprehensive income for the period 23,778 (1,113)
Attributable to:
Equity holders of the Company 24,826 (594)
Non-controlling interests (1,048) (519)

OTHER FINANCIAL INFORMATION

RMB in millions, unless specified

Unaudited
3Q2022 2Q2022 3Q2021
EBITDA (a) 43,124 38,628 42,683
Adjusted EBITDA (a) 48,610 44,668 49,257
Adjusted EBITDA margin (b) 35% 33% 35%
Interest and related expenses 2,729 2,327 2,092
Net (debt)/cash (c) (27,271) (20,429) (26,146)
Capital expenditures (d) 2,377 3,015 7,061

Note:
(a) EBITDA is calculated as operating profit minus interest income and other gains/losses, net, and adding back depreciation of property, plant and equipment,
investment properties as well as right-of-use assets, and amortisation of intangible assets and land use rights. Adjusted EBITDA is calculated as EBITDA
plus equity-settled share-based compensation expenses.
(b) Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenues.
(c) Net (debt)/cash represents period end balance and is calculated as cash and cash equivalents, plus term deposits and others, minus borrowings and
notes payable.
(d) Capital expenditures consist of additions (excluding business combinations) to property, plant and equipment, construction in progress, investment
properties, land use rights and intangible assets (excluding video and music content, game licences and other content).

Page 8 of 11
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
RMB in millions, unless specified
Unaudited Audited
As at As at
September 30, 2022 December 31, 2021
ASSETS
Non-current assets
Property, plant and equipment 55,406 61,914
Land use rights 18,195 17,728
Right-of-use assets 22,448 20,468
Construction in progress 7,671 5,923
Investment properties 555 517
Intangible assets 175,744 171,376
Investments in associates 301,846 316,574
Investments in joint ventures 6,796 6,614
Financial assets at fair value through profit or loss 207,222 192,184
Financial assets at fair value through other
comprehensive income 169,918 250,257
Prepayments, deposits and other assets 37,054 37,177
Other financial assets 7,563 1,261
Deferred income tax assets 28,358 26,068
Term deposits 24,945 19,491

1,063,721 1,127,552

Current assets

Inventories 2,933 1,063

Accounts receivable 44,837 49,331
Prepayments, deposits and other assets 71,615 65,390
Other financial assets 1,521 1,749
Financial assets at fair value through profit or loss 21,089 10,573
Term deposits 109,636 83,813
Restricted cash 2,614 2,476
Cash and cash equivalents 160,177 167,966
Assets held for distribution - 102,451

414,422 484,812

Total assets 1,478,143 1,612,364

Page 9 of 11
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)
RMB in millions, unless specified
Unaudited Audited
As at As at
September 30, 2022 December 31, 2021
EQUITY
Equity attributable to equity holders of the Company
Share capital - -
Share premium 68,636 67,330
Treasury shares (3,193) -
Shares held for share award schemes (4,565) (4,843)
Other reserves (54,303) 73,901
Retained earnings 749,345 669,911

755,920 806,299

Non-controlling interests 62,486 70,394

Total equity 818,406 876,693

LIABILITIES
Non-current liabilities
Borrowings 171,009 136,936
Notes payable 151,535 145,590
Long-term payables 10,246 9,966
Other financial liabilities 5,679 5,912
Deferred income tax liabilities 13,895 13,142
Lease liabilities 18,082 16,501
Deferred revenue 3,944 4,526

374,390 332,573

Current liabilities
Accounts payable 99,789 109,470
Other payables and accruals 55,176 60,582
Borrowings 9,694 19,003
Notes payable 10,646 -
Current income tax liabilities 10,555 12,506
Other tax liabilities 2,864 2,240
Other financial liabilities 5,738 3,554
Lease liabilities 6,207 5,446
Deferred revenue 84,678 87,846
Dividends payable for distribution in specie - 102,451

285,347 403,098

Total liabilities 659,737 735,671

Total equity and liabilities 1,478,143 1,612,364

Page 10 of 11
RECONCILIATIONS OF IFRS TO NON-IFRS RESULTS
Adjustments
As Share-based Net (gains)/losses Amortisation of Impairment Income
SSV & Non-IFRS
RMB in millions, reported compensation from investee intangible assets provisions/ Others (f) tax effects
CPP (e)
unless specified (a) companies (b) (c) (reversals) (d) (g)
Unaudited three months ended September 30, 2022

Operating profit 51,593 5,925 (32,341) 1,313 12,962 1,445 10 – 40,907

Profit for the period 38,842 8,020 (32,106) 3,065 13,283 1,445 1,738 (933) 33,354
Profit attributable to
equity holders 39,943 7,818 (32,402) 2,836 11,617 1,445 1,738 (741) 32,254
Operating margin 37% 29%
Net margin 28% 24%
Unaudited three months ended June 30, 2022
Operating profit 30,067 6,507 (5,539) 1,255 2,831 1,370 176 – 36,667
Profit for the period 19,230 8,439 (6,085) 2,989 3,189 1,370 176 (321) 28,987
Profit attributable to
equity holders 18,619 8,257 (5,968) 2,767 3,189 1,370 176 (271) 28,139
Operating margin 22% 27%
Net margin 14% 22%
Unaudited three months ended September 30, 2021
Operating profit 53,137 6,652 (26,569) 1,149 6,389 70 – – 40,828
Profit for the period 40,075 10,242 (26,781) 3,093 6,452 70 – (633) 32,518
Profit attributable to
equity holders 39,510 10,063 (26,491) 2,719 6,452 70 – (572) 31,751
Operating margin 37% 29%
Net margin 28% 23%

Note:
(a) Including put options granted to employees of investee companies on their shares and shares to be issued under investee companies’ share-based incentive plans which can be acquired by the Group, and other incentives
(b) Including net (gains)/losses on deemed disposals/disposals of investee companies, fair value changes arising from investee companies, and other expenses in relation to equity transactions of investee companies
(c) Amortisation of intangible assets resulting from acquisitions
(d) Mainly including impairment provisions/(reversals) for associates, joint ventures, goodwill and other intangible assets arising from acquisitions
(e) Mainly including donations and expenses incurred for the Group’s Sustainable Social Value and Common Prosperity Programme ("SSV & CPP”) initiatives
(f) Mainly including expenses incurred for regulatory fines and certain litigation settlements of the Group and/or arising from investee companies
(g) Income tax effects of non-IFRS adjustments

Page 11 of 11