ByteDance reports record profits despite TikTok’s losses

Published:

Apr 9, 2023 23:55 GMT

In 2022, the company achieved some $25 billion in profit, surpassing Chinese tech giants Tencent and Alibaba.

ByteDance, the Chinese company that owns TikTok, reported record profits in 2022, despite losses and the campaign against the network in the West, reports Financial Times.

Last year, ByteDance made a profit of about $25 billion. In this way, it surpassed the Chinese technology giants Tencent and Alibaba, with profits of 23.9 and 22.5 billion dollars respectively. In addition, its profits in 2022 increased by 79% compared to 2021. According to ByteDance investors, the company in 2022 obtained about 70,000 million dollars in revenue in China and about 15,000 million in the international market. The latest rate even more than doubled that of 2021, they claimed.

The good financial results came despite losses from TikTok, which generated around 80% of all ByteDance revenue in China. According to a US investor in ByteDance, if the Biden administration bans the network in the US, this will not affect the company that owns it much. “A percentage of TikTok is not as important to ByteDance’s total revenue as is assumed,” he explained. However, he added that “the ban would be a real loss to future potential, given its rate of growth.”

In March, the US, New Zealand, UK, Canada and Belgium banned use of the app on government devices, arguing that TikTok’s data collection methods provide a “considerable access” to phone content. In early April, Australia followed suit.