On November 13th, futu news reported that Tencent announced its performance for the third quarter of 2024, the financial report shows:

• Revenue of 167.193 billion yuan (RMB, same below), a year-on-year increase of 8%;

• Net income was 53.23 billion yuan, a year-on-year increase of 47%.

• Adjusted net income is 59.813 billion yuan, a year-on-year increase of 33%;

• Earnings per share is 5.762 yuan, a year-on-year increase of 51%;

• Earnings per share under non-IFRS is 6.475 yuan, a year-on-year increase of 36%.

Looking at specific revenue segments:

• Value-added services business

In the third quarter of 2024, revenue increased by 9% year-on-year to RMB 82.7 billion. International market game revenue was RMB 14.5 billion, an increase of 9% year-on-year (or 11% calculated at a fixed exchange rate), mainly due to strong performances of games including 'PUBG MOBILE' and 'Wild Rift.' The growth rate of international market game revenue significantly lagged behind the overall revenue growth, as the retention rate of some games improved, leading us to extend the revenue deferral period accordingly. Domestic market game revenue increased by 14% year-on-year to RMB 37.3 billion, driven by games such as 'Fearless Pact,' 'Honor of Kings,' 'Peace Elite,' and 'Dungeon & Warrior: Origins.' Social network revenue increased by 4% year-on-year to RMB 30.9 billion, benefiting from the growth in mobile virtual goods sales, music subscription revenue, and mini-game platform service fees, partially offset by declines in music and game live streaming service revenue.

• Marketing services business

In the third quarter of 2024, revenue increased by 17% year-on-year to RMB 30 billion, driven by strong demand from advertisers for Video Number, Mini Programs, and WeChat search advertising inventory and a modest contribution from brand advertising related to the Paris Olympics. Advertising spending in the gaming and e-commerce industries increased year-on-year, surpassing the reduction in spending in the real estate and food & beverage industries.

• Fintech and enterprise services business

In the third quarter of 2024, revenue increased by 2% year-on-year to RMB 53.1 billion. Overall, fintech service revenue remained relatively stable compared to the same period last year, with wealth management service revenue increasing year-on-year due to user base expansion and growth in customer asset holdings, while payment service revenue slightly declined due to weak consumer spending. Enterprise service revenue increased year-on-year, driven by growth in cloud service revenue and merchant technical service fees.

About Repurchase As of the three months ended September 30, 2024, Tencent purchased a total of approximately 35.9 billion Hong Kong dollars (excluding expenses) on the Hong Kong Stock Exchange to repurchase a total of 94.8974 million shares. The repurchased shares have since been cancelled. The repurchase is aimed at long-term increase in shareholder value.

As of September 30, 2024, Tencent repurchased a total of 94.8974 million shares on the Stock Exchange for a total consideration of approximately HK$35.9 billion (excluding expenses). The repurchased shares have since been canceled. The buyback was intended to enhance long-term shareholder value.

Announcement document:Tencent's performance for the three months ended September 30, 2024

Click to make an appointment:Tencent's 2024 Q3 performance live broadcast (real-time translation)

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