Rich way Information May 15 news, Tencent released the 2019 quarterly report after the Hong Kong stock market.
According to the financial report, 19Q1's revenue was 85.4 billion yuan, up 16% from the same period last year; non-general accounting standards Non-GAAP net profit was 20.9 billion yuan, up 14% from the same period last year; and general accounting standards net profit was 27.2 billion yuan, up 17% from the same period last year.
Source:HKEx
Game business
Online game revenue was 28.513 billion yuan, an increase of 10% over the same period last year.Including Tencent game props sales revenue due to income deferred policy and the presentation of income differences. Thanks to the peak season and the upgrading of major PC and smartphone games, both streaming revenue and reporting revenue recorded month-on-month growth.
According to Tencent's first quarterly report, revenue from PC client games was 13.8 billion yuan, down 2% from the same period last year and up 24% from the previous month. In the first quarter, core paying users of major PC games remained healthy and active. "League of Legends" has accelerated the launch of new skin styling, which has increased user activity, and recently, a number of new skin styling have been particularly popular, which has also led to a rebound in flowing revenue. At the end of January, Dungeon & Fighter released a major content update, raising the upper limit of the role rating, and the number of fee-paying households increased month-on-month with the introduction of promotional gift packages during the Spring Festival.
Smartphone game revenue fell 2 per cent year-on-year to 21.2 billion yuan in the first quarter, due to a decrease in new game releases, but rose 11 per cent month-on-month due to seasonal activities。
As Tencent only released "Perfect World Mobile Games" at the end of this season, the game brought a lot of flow revenue in the first quarter, and most of the flow income will be deferred to a later period before it is recognized as presentation income, so the game's contribution to this quarter's presentation income is limited. According to App Annie, PUBG MOBILE has more than 100m monthly active users in the international market (excluding Chinese mainland) since February, and Tencent released a new Royale Pass in March, driving the game's revenue growth.
In the second quarter, Tencent is about to release a number of moderate to heavy games.Covering action, role-playing and simulation strategy games, as well as tactical competitive game Game for Peace The introduction of quarterly passes for overseas games (such as "Fortnite" and "PUBG MOBILE") makes an important contribution to user activity, payment rates and income, while the quarterly passes for some of Tencent's major games in China are in the early experimental stage, such as "Mobile Games across Fire", "Arena of Valor" and "QQ Speed Mobile".
Communications and social services
The combined number of monthly active user accounts of Wechat and WeChat reached 1.112 billion in the first quarter, up 6.9 per cent from a year earlier. In the first quarter, the number of monthly active users of QQ's smart terminals increased slightly to more than 700m compared with the same period last year. Among them, the activity of young users on the QQ platform increased, and the number of monthly active users recorded double-digit growth compared with the same period last year.
Digital content
The number of subscription accounts for paid value-added services increased by 13% year-on-year to 165.5 million, mainly driven by the number of subscriptions to video and music services. The number of Tencent video subscription accounts increased by 43% to 89 million over the same period last year.Mainly due to the popularity of custom IP content. The number of Tencent video subscription accounts is roughly the same, and it may contribute more to the growth of subscription accounts had it not been for the delayed release of some episodes.
Online advertising
Online advertising revenue rose 25 per cent year-on-year to 13.4 billion yuan.Due to the challenging macro environment and the impact of a large base, the growth rate of this business income has slowed down compared with previous years. Affected by the off-season in the first quarter, online advertising revenue fell 21% month-on-month. Social and other advertising revenue rose 34 per cent year-on-year to 9.9 billion yuan, benefiting from an increase in the filling rate and advertising volume of each advertising inventory.
The bidding volume in the first quarter was less than that in the fourth quarter of last year, resulting in a month-on-month drop in the cost per click. Media advertising revenue rose 5 per cent year-on-year to 3.5 billion yuan, mainly due to an increase in information flow advertising. However, the delayed release of some popular shows has reduced the inventory of video ads, so long-term video advertising revenue is basically flat compared with the same period last year.
Financial technology and corporate services
Revenue from financial technology and corporate services rose 44 per cent year-on-year to 21.8 billion yuan in the first quarter, driven by commercial payments, other financial technology services (such as microloans) and cloud business.
Other
Pay dividends
In accordance with a resolution passed by the Board on 21 March 2019 and subject to shareholders' approval at the annual general meeting of shareholders in 2019, a final dividend of HK $1.00 per share (2017: HK $0.88 per share) for the year ended 31 December 2018 is recommended. This proposed dividend is not reflected in the dividend payable in the interim financial information.
income from investment
As at 31 March 2019, the fair value of the investment in listed associates was RMB 243.361 billion (31 December 2018: RMB 187.339 billion).
Prior to this, a number of rating agencies made forecasts for Tencent's Q1 results. Morgan Stanley said in a research report that Tencent (00700) is expected to grab more share of the game market and outperform his peers in the coming quarters. Game for Peace's initial market performance is encouraging, raising its profit forecast for the next three years and raising its target price by 5% to HK $430.
附：Financial report original text
Read Tencent's quarterly report: financial and corporate services revenue is 21.8 billion, up 44%.