The Chinese company ByteDance made a profit of $25 billion in 2022. This is 79% more than the $14 billion received a year earlier. The TikTok developer has managed to achieve record profits despite the problems of its short video service, which has long been a source of concern for the authorities in different countries due to potential security problems.
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The report said that ByteDance generated $85 billion in sales last year, up more than 30% from the previous year. This growth is driven by advertisers spending more on campaigns on TikTok and the Chinese version of Douyin. Due to this success, ByteDance overtook other Chinese IT giants Tencent and Alibaba, whose underlying income for the reporting period was $23.9 billion and $22.5 billion, respectively.
ByteDance’s explosive growth comes as a number of governments are considering banning TikTok, citing national security concerns. Although the company made about 80% of its profits in China last year, and TikTok was unprofitable, the video service is one of the sources of profit in the long term. One of ByteDance’s U.S. investors believes that the TikTok ban will not have a significant impact on the company’s financial performance.
Image Source: Financial Times
According to the source, ByteDance’s international business, which includes TikTok, generated about $15 billion in sales in 2022, roughly double the year-earlier figure. At the same time, sales in the home market rose to about $ 70 billion. ByteDance itself does not disclose data on income and profitability. Official representatives of the company refrain from commenting on this issue.
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