Tencent's performance in the fourth quarter of 2023 (4Q23) is evaluated positively, despite initial concerns over regulatory policies for online gaming introduced in December. An official clarification regarding the policy, which is not aimed at increased control, suggests minimal impact on Tencent. A key growth driver has been the monetization of video accounts through advertising and e-commerce, alongside attracting more content creators. The company's PC game segment, particularly Cross Fire, added more servers, indicating robust performance.

Tencent's projected revenue for 4Q23 is estimated at RMB161,985M, marking an 11.7% year-over-year increase and exceeding consensus expectations of RMB159,405M. This growth is primarily attributed to a 17.4% year-over-year rise in online advertising and an 18.3% increase in the Fintech and Business Services segment.

In mobile gaming, titles like Honor of Kings and Peacekeeper Elite maintained strong performance, ranking in the top three. New games such as Dream Stars, League of Legends: Wild Rift, and Battle of Golden Spatula also performed well, with notable rankings in December. The overall popularity of Tencent's games grew 7.6% year-over-year, despite a quarter-over-quarter decline of 17.3%. The company's mobile game grossing ranks improved compared to the previous quarter.

For PC games, daily Active User Counts (ACUs) decreased both quarter-over-quarter and year-over-year, with a significant drop in Cross Fire's user counts. However, the total number of PC game servers increased to 4,056 in 4Q23, up from 3,704 in the previous quarter, thanks to Cross Fire's addition of 352 new servers. This expansion underscores Tencent's continued investment in its gaming infrastructure, despite the fluctuating user base.

In conclusion, Tencent's 4Q23 performance indicates resilience and adaptability in a changing regulatory and market environment, bolstered by strategic growth in key areas like video monetization, new game launches, and expansion of gaming servers.