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Tencent earnings interpretation: force short video micro view, QQ spot was mentioned in the earnings report

via:博客园     time:2018/5/17 11:34:12     readed:303


Sina Technology Tan Yihan

Yesterday evening, Tencent released its financial report for the first quarter of 2018. In the first quarter of 2018, Tencent’s total revenue was RMB 73.528 billion, an increase of 48% year-on-year. Profit attributable to equity holders of the company was 23.29 billion yuan, a year-on-year increase of 61%.


Game revenue accounts for nearly 40% of total revenue

Since the first quarter was often the off-season of online advertising business, and the ratio of revenue to total revenue decreased, the proportion of game revenue to total revenue in the first quarter of 2018 increased, but it still maintained a proportion of about 40%.

According to the financial report, online game revenue increased by 26% to RMB 28.778 billion in the first quarter. PC revenue was basically stable. Game revenue growth was mainly attributable to the growth of mobile game revenue, including existing games such as “Glory to Kings” and “Miracle MU: Awakening”. "And QQ Flying Tour" and other new games.


At the analyst meeting after the publication of the financial report, Liu Chiping, president of Tencent, stated that in the future, it is expected that the time for users to play PC-based games will gradually decrease and move to mobile games. The growth of PC-side tour revenue in the first quarter is affected by seasonal factors. . In addition, the company believes that the tactical tour is the biggest opportunity after the second hand in the past five years, the company also through this model to increase the number of users, is expected to contribute to the future revenue is very large.

Microvision is entrusted with important tasks

In the value-added services business, social network revenue increased by 47% to RMB 18.099 billion. According to the financial report, the value-added service registration account at the end of the first quarter increased 24% year-on-year to 147 million, which was mainly driven by video and music streaming services, of which video subscription revenue increased by 85% year-on-year.

The financial report also specifically mentioned the short video platform microvision. Its content includes content generated by professional users in the industry, as well as Tencent's proprietary digital content library covering music, games, sports, and variety shows. Content on the micro video can also be distributed through vertical scenes such as QQ Watch and mobile QQ browser.

Liu Chiping said at the analyst meeting that the company has re-introduced the micro video platform micro vision. "Microvision's mission is to push micro-videos to Tencent's social app and browser app. The production of these micro-videos can be based on web red video, based on Tencent's long-distance video, music, variety and sports and other exclusive programs and content." The company will invest heavily in the micro-vision platform and have full confidence in its development prospects. ”

The circle of friends in advertising has grown rapidly

Affected by seasonal factors, the revenue of online advertising business decreased by RMB 11.863 billion compared with RMB 12.361 billion in the fourth quarter of 2017 to RMB 10.689 billion. Compared with the previous quarter, the first quarter was the off-season when advertisers launched, so video and news advertising revenues showed a reasonable quarterly decline.

The larger year-on-year increase was for social and other advertising revenue growth. The financial report pointed out that in the off-season factor, QQ watchpoint revenue growth due to rapid growth in traffic. In addition, due to the expansion of the advertiser base, the number of advertisements displayed by the WeChat circle of friends increased from the previous one to the maximum of two per day at the end of March.

Payment income maintains three-digit growth

Compared with game business, advertising business, payment business and cloud computing business show a high growth trend. Among them, the payment business achieved a three-digit growth in the first quarter, while the gross profit margin reached a record high of 25%, and the growth of the payment solution business was mainly due to the rapid growth of offline commercial payment transaction volume and consumer cash withdrawal fee.

Liu Chiping analyzed at the analyst meeting that in terms of payment services, competitors provided a lot of subsidies for users, and Tencent must also provide subsidies to occupy the market, affecting the company's revenue conversion rate to some extent, and some of them use For promotional expenses. “Subsidies to users will continue in the near future. We believe that all market participants will continue to increase input. In turn, these investment and promotion promotion will enlarge the market’s cake and benefit all parties. ”

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