BOCOM INTL maintains the expectation for TENCENT (00700) to accelerate the growth of mobile game revenue in the fourth quarter of 2024 and the first quarter of 2025.
According to Zhihong Finance APP, BOCOM INTL has released a Research Report stating that it gives a leading rating to the Internet Plus-Related Industry. In December 2024, the domestic leading mobile games tracked by this bank experienced a 3% year-on-year increase in total revenue, consistent with the growth rate from November, and a 3% month-on-month increase, mainly benefiting from the promotional operations during the Double Festivals (Christmas and New Year's Day).
The bank stated that it maintains the expectation for TENCENT (00700) to see accelerated growth in mobile game revenue in the fourth quarter of 2024 and the first quarter of 2025, with stable business performance driving a recovery in valuation. The high base effect on NTES-S (09999) mobile games is gradually easing, and the performance of new PC games meets expectations, with a rich product line ahead, sustaining the expectation for a recovery in gaming revenue growth.
The report noted that in the fourth quarter, TENCENT's domestic mobile game revenue increased by a net 7% year-on-year, with the monthly revenue of 'MDnF' rebounding from previous declines; overseas revenue rose by 14% year-on-year. The high base effects on NetEase's 'Nishui Han' are reducing, and overseas revenue remained flat year-on-year.