Futu News reported on May 14 that Tencent announced the results for the first quarter ended March 31, 2024. The financial report showed:
Revenue of 159.501 billion yuan (RMB, same below), an increase of 6% over the previous year;
Net profit was 41,889 billion yuan, an increase of 62% over the previous year;
Adjusted net profit of $50.265 billion, a year-on-year increase of 54%;
Earnings per share were 4.479 yuan, up 64% year on year;
Non-IFRS earnings per share were $5.375, up 57% year over year.
Looking at the specific revenue segments:
Value-added service business
Revenue from the value-added services business fell 0.9% year-on-year to RMB78.6 billion in the first quarter of 2024. Total game sales in the international market increased 34% year over year, due to the recovery in popularity of Supercell games (especially “Brawl”) and the increase in users and sales of “PUBG MOBILE”.
Due to Supercell's long game revenue deferral period, game revenue in the international market increased 3% year over year to RMB 13.6 billion (year over year stable at a fixed exchange rate). Total game turnover in the local market resumed year-on-year growth, reaching 3%. Game revenue in the local market fell 2% year over year to RMB 34.5 billion, due to revenue delays.
Internet advertising business
The revenue of the online advertising business increased 26% year over year to RMB 26.5 billion in the first quarter of 2014. This was driven by the growth of WeChat video accounts, applets, public accounts and search, and was driven by increased user engagement and our constantly upgraded AI-driven advertising technology platform. Advertising spending increased in all major industries except the automotive industry, with significant increases in advertising spending in the gaming, internet services, and consumer goods industries.
Fintech and corporate services business
Revenue from the fintech and corporate services business increased 7% year-on-year to RMB52.3 billion in the first quarter of 2024. Revenue from fintech services grew at a single-digit percentage year over year, mainly due to a slowdown in offline consumer spending growth and a decrease in withdrawal revenue, while revenue from financial management services grew strongly. Enterprise service revenue achieved a year-on-year growth rate of more than ten points due to the increase in cloud service revenue and technical service fees for video account merchants.
About repurchases
Tencent Holdings said it will step up repurchase efforts, implement share repurchases of over HK$100 billion in 2024 as planned, increase dividends, and is committed to continuing to invest in AI technology, enhance platforms and produce high-value content.
Link to the original announcement:Tencent Holdings Results for the Three Months Ended March 31, 2024
Click to make an appointment:Tencent Holdings 2024Q1 Results Live Stream (Simultaneous Interpretation)
Also, Futu's senior strategists will check Tencent's performance with everyone at the physical store on May 16 (Thursday) to decide whether they can regain their upward trend. Niu friends are welcome to participate in online and offline lectures~