On May 18, Tencent announced its results for the first quarter ended March 31, 2022. The financial report shows that:
Q1 had revenue of 135.471 billion yuan (RMB, the same below), compared with 135.303 billion yuan in the same period last year, unchanged from the same period last year.
The net profit of Q1 was 23.413 billion yuan, down 51% from the same period last year.
The adjusted net profit of Q1 was 25.545 billion yuan, down 23% from the same period last year.
Q1 earned 2.404 yuan per diluted share, compared with 4.917 yuan in the same period last year.
In addition, Wechat and WeChat have 1.288 billion monthly active users, up 3.8% from the same period last year.The number of monthly active users on QQ mobile terminals was 564 million, down 7 per cent from the same period last year.
In terms of specific revenue segments:
Value-added service service
Income in the first quarter of 2022 was 72.7 billion yuan, which was generally stable compared with the first quarter of 2021. Game revenue in the local market fell 1 per cent to 33 billion yuan, as underage protection measures had a direct and indirect impact on the number of active and paying users.
In this quarter, revenue growth from recently launched games such as League of Legends Mobile Games and Golden Shovel Battle was largely offset by a decline in revenue from games such as Moonlight Blade Mobile Games and call of Duty Mobile Games. Game revenue in the international market rose 4 per cent to 10.6 billion yuan, or 8 per cent at a fixed exchange rate, reflecting an increase in income from games such as "VALORANT" and "clash of tribes", but the increase was partly offset by a decline in income from "PUBG Mobile" as user consumption fell after the COVID-19 epidemic.
Social network revenue rose 1 per cent to 29.1 billion yuan, reflecting an increase in revenue from live video services, mostly offset by a decline in revenue from live music and games.
Online advertising business
Revenue in the first quarter of 2022 fell 18% year-on-year to 18 billion yuan, reflecting weak advertising demand in industries such as education, Internet services and e-commerce, as well as the impact of regulatory changes in the online advertising industry itself. partly offset by steady demand from the FMCG industry and advertising revenue from the merger of Sogou.
Social and other advertising revenues fell 15 per cent to 15.7 billion yuan, mainly due to a sharp drop in revenue from the mobile advertising alliance's advertising business adapting to regulatory influence.
On the other hand, the subscription list ads in the official account have driven the growth of its advertising revenue, which partly offset the decline in the alliance's advertising revenue.
Media advertising revenue fell 30 per cent to 2.3 billion yuan, reflecting a decline in advertising revenue from media such as Tencent News and Tencent Video, which was partly offset by advertising revenue from the 2022 Beijing Winter Olympic Games.
Financial technology and corporate service business
Revenue in the first quarter of 2022 rose 10 per cent year-on-year to 42.8 billion yuan. The slowdown in the growth rate of financial technology services revenue compared with the same period last year reflects the impact of a new round of COVID-19 epidemic on commercial payment transactions in March 2022. With a slight decline in corporate service revenue compared with the same period last year, Tencent repositioned IaaS services from simply pursuing income growth to achieving healthy growth, and took the initiative to reduce loss-making contracts.
According to Bloomberg's forecast, Tencent's Q1 revenue was 141.058 billion yuan, up 5.5% from a year earlier, while adjusted net profit was 26.439 billion yuan, down 20.4% from a year earlier.
附：Tencent's performance for the three months ended March 31, 2022
The company will hold an earnings call at 20:00 Beijing time tonight. Niu you are welcome to follow us at that time:
[performance meeting] Tencent 2022Q1 performance call (Chinese simultaneous interpretation)
Edit / Viola