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Chinese tech giant ByteDance (BDNCE) saw profits rise about 60% in 2023, outpacing the growth of its online peers Tencent (OTCPK:TCEHY) (OTCPK:TCTZF) and Alibaba (BABA), Bloomberg reported. News citing people familiar with the matter.
TikTok’s parent company’s EBITDA has risen to more than $40 billion in 2023, compared to about $25 billion in 2022. Meanwhile, sales grew to about $120 billion versus $80 billion in 2022, according to the report added.
According to the report, the results mark the first time ByteDance has surpassed rival Tencent in both revenue and profit, as it has used its short video platforms to expand into international e-commerce.
The company’s internal data has not been independently audited, but suggests the social media company will become one of the world’s fastest-growing tech companies in 2023.
Last year, ByteDance – which runs TikTok and its Chinese sister app Douyin – solidified its position as one of China’s internet leaders, along with Tencent and Alibaba, which have struggled to revive growth at a time when c ‘is economic uncertainty and consumer distrust in China.
In China, Douyin is transforming into an all-in-one platform similar to Tencent’s WeChat, with its additional features entering Alibaba’s e-commerce territory and competing with Meituan for food delivery orders. In February, ByteDance ( BDNCE ) said Kelly Zhang would step down as CEO of Douyin Group and take a new role at ByteDance’s video editing app.
Meanwhile, the successful launch of TikTok Shop outside of China, in markets such as the United States and Southeast Asia, has brought in new sources of revenue, the report adds.
TikTok, however, faces challenges from the world’s largest economy. In March, the US House of Representatives passed a bill ordering ByteDance to sell the app’s US operations or face a ban in the country. Senators have yet to decide how to address the issue.
Earlier this month, US President Joe Biden and his Chinese counterpart Xi Jinping discussed TikTok and its ownership, among other things, in a call between the two world leaders.