On August 14, Tencent released its second quarterly report in 2019 after the Hong Kong stock market:

• Revenue in the second quarter was 88.82 billion yuan, compared with 73.675 billion yuan in the same period last year.

• Tencent made a net profit of 24.14 billion yuan in the second quarter, with market estimates of 21.1 billion yuan.

• The adjusted profit was 23.5 billion yuan, up 19% from the same period last year.

• In addition, the quarterly revenue from mobile games was 22.2 billion yuan, an increase of 26% over the same period last year.

The interim results are as follows:

Total income: 18% year-on-year growth; profit attributable to equity holders of the company according to non-general accounting standards: 17% year-on-year growth.

• Total revenue was 174.286 billion yuan, up 18% from the first half of 2018 compared with the same period last year.

• Operating profit was 64.263 billion yuan, up 22 per cent from a year earlier, and operating profit margin rose to 37 per cent from 36 per cent last year.

• The profit during the period was 52.54 billion yuan, an increase of 23% over the same period last year. Net profit margins rose to 30 per cent from 29 per cent last year.

• The profit attributable to the equity holders of the Company during the period was RMB 51.346 billion, an increase of 25% over the same period last year.

• The basic earnings per share is RMB 5.427. The diluted profit per share is 5.362 yuan.

Communication and social interaction

In the second quarter of 2019The combined number of monthly active users of Wechat and WeChat reached 1.133 billion, up 7 per cent from a year earlier.QQ's smart terminal has 707 million monthly active users, which is roughly stable compared with the same period last year.

Game business

Total online game revenue rose 8 per cent year-on-year to 27.3 billion yuan.

Smartphone game revenue (including revenue from smartphone games belonging to the social network business) increased 26% year-on-year to 22.2 billion yuanBenefit from the popularity of existing major games and recently launched games. Smartphone game revenue increased by 5% month-on-month, due to the increase in game circulation after the game version number was resumed for approval, offsetting the off-season factors.

This season, Tencent released 10 games, including the self-developed AR game Zhuoyao, and the self-developed role-playing games goblin tail and Rachel, while only one game was released in the first season. The income of "Arena of Valor" recorded a year-on-year increase. Perfect World Mobile Games is a role-playing agent game released by Tencent in March, which made a significant contribution to Tencent's income in the second quarter. Since the launch of the tactical competitive game "Game for Peace" in May, the number of daily active users has exceeded 50 million, commercialization has been launched and season tickets have been successfully launched, although the contribution to the reporting income in the second quarter is limited due to delay.

Digital content

The number of subscription accounts for paid value-added services increased by 10 per cent year-on-year to 168.9 million, mainly driven by an increase in the number of subscriptions to video and music services.The number of Tencent video subscription accounts increased 30 per cent year-on-year to 96.9 million, mainly due to joint membership offers launched by Tencent and strategic partners, as well as the popularity of the Guoman series "Doluo mainland" (second quarter). However, due to the delay of some popular shows, the growth of video subscription accounts has slowed down.

Online advertising

Online advertising revenue was 16.4 billion yuan, an increase of 16% over the same period last year.Tencent expects the negative impact of the current business environment to continue in the second half of 2019. The month-on-month increase in revenue in this area was due to the peak season of advertising demand in the e-commerce and online education industries. Social and other advertising revenue was 12 billion yuan, up 28% from the same period last year, mainly due to increased advertising inventory and exposure, such as products such as Wechat moments and QQ viewers.

Financial technology and corporate services

Revenue from financial technology and corporate services was 22.9 billion yuan, an increase of 37% over the same period last year.Excluding interest income from the balance of provisions, revenue from financial technology and corporate services increased by 57% compared with the same period last year.

Securities firm forecast

Prior to this, a number of rating agencies made forecasts on Tencent's Q2 performance. Of these, Non-GAAP net profit of Societe Generale Securities is expected to be 23.11 billion, up 17% from the same period last year; CICC is expected to be 23.1 billion, up 16.9% from the same period last year; and Shen Wanhong Yuan is expected to be 23.6 billion, up 19.7% from the same period last year.