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After Tencent's Q1 financial report, the market value of Tencent hit a new high

via:博客园     time:2020/5/14 21:25:22     readed:1501


Photo source @ visual China

When it released its first-quarter 2020 results, Tencent experienced two voices of criticism and approval: the need to be questioned

On May 13, Tencent (00700. HK) released its first quarter performance report in 2020 after Hong Kong stock trading. In 2020, Tencent's revenue was 108.065 billion, up 26% year-on-year; its net profit (non IFRS) was 27.079 billion, up 29% year-on-year, higher than the market expectation. Tencent maintained this record again after its first single quarter revenue of more than 100 million in Q4 last year.

As early as May 11, Tencent's market value exceeded HK $4 trillion, a new high in nearly two years. After today's opening, Tencent's share price rose 3.07% to HK $442.8, with a total market value of more than HK $4.23 trillion.

From the perspective of business segment Tencent's revenue by business is divided into three parts: value-added services (social networks for online games), financial technology and business services, and online advertising (social and other advertising media). Below is the specific financial performance of Tencent's business lines in the Q1 quarter of 2020.

  • Value added service revenue increased by 27% year on year to 62.429 billion yuan. Among them, online game revenue increased by 31% to 37.298 billion yuan. Social network revenue increased by 23% to 25.131 billion yuan;
  • Financial technology and enterprise services increased by 22% year on year to 26.475 billion yuan.
  • Online advertising revenue increased by 32% year on year to 17.713 billion yuan. Among them, social and other advertising revenue increased by 47% to 14.592 billion yuan. Media advertising revenue fell 10% to 3.121 billion yuan.


Financial data of Tencent Q1 business lines


Proportion of Tencent's business segments (drawing / Luyi)

  • It can be seen from the proportion of revenue from the main business sector in Q1 that Tencent's online game business is rejuvenated, with a year-on-year growth of 31%, higher than the 25% growth rate in Q4, and finally led the quarterly revenue by 35%.
  • The financial technology and enterprise services sector, which became a new growth engine in Q4, suffered some setbacks in this quarter due to the impact of the epidemic, with a year-on-year growth of 22% higher than the 12% growth rate in Q4, accounting for 25% of the overall market, which is still the second largest source of revenue.
  • The online advertising business grew by 32% year on year, of which social and other advertising revenue continued to maintain a rapid growth of 47%. According to questmobile, the outbreak in Q1 increased the Internet duration by 27% year-on-year, but the online advertising market shrank by 20% year-on-year. Tencent has achieved growth against the trend.

In general, Tencent's diversified revenue structure has been formed, which helps it resist market risks.

Cross-cutting Tencent 2019“背水一战”的腾讯发完

Tencent maintained double-digit revenue growth in each quarter of 2019

In terms of user data, wechat and wechat combined monthly active accounts reached 1.203 billion, a year-on-year increase of 8.2%; QQ monthly active accounts reached 693.5 million, a year-on-year decrease of 1.0%; small program users grew rapidly, and the number of daily active accounts exceeded 400 million.

Anxin said the expected Q1 had a short-term negative impact on the company's business, but would offset the unexpected performance of mobile games and effect-like social ads, maintaining the buy rating.

Under the house economy, the net swims again becomes

In the current quarter, online game revenue increased 31 percent to 37.298 billion yuan. Tencent's online games business grew 8%,11% and 25% Q2、Q3、Q4 2019 year-on-year, and after the recovery of its online games business, Tencent's online games business has once again become

Tencent's online game business Q1 revenue increased by 31% to 37.298 billion yuan year on year. According to the financial report, the growth of the business is mainly driven by the income contribution of domestic mobile games (including "peace elite" and "King glory") and the contribution of overseas games (including "pubg Mobile" and "clash of Clans").

According to the financial report, the daily life of "glory of the king" can be improved through the introduction of game content and in game activities. And "peace elite" has also increased user activity through cooperation with rocket girl 101. In the international market, Tencent held a two-year celebration for the pubg mobile game, which enhanced its localization ability to meet the needs of users in different regions.

According to sensor tower data, in January this year, mobile game "pubg mobile" generated nearly $83 million in overseas revenue, up year on year 79.8% 。 As of March 15, 2020, the total overseas downloads of pubg mobile exceeded five point one five Billion times. In addition, the market share of peace elite in South Korea, South Asia and the Middle East is over 55%.

During the Q1 epidemic, the home economy, including games, achieved good, online entertainment as a whole has been greatly improved. And with the end of the domestic epidemic,

In terms of social network revenue, the number of subscription accounts for charging value-added services increased by 19% to 197 million, mainly driven by the increase in the number of subscription accounts for video and music services.

Among them, the number of Tencent video subscription accounts increased to 112 million, a year-on-year increase of 26%; the number of music paying users exceeded 43 million. In terms of short video, the user traffic and short video browsing of micro vision, news information flow platform and small programs have been improved.

According to the analysis of Changqiao securities, Tencent still has many profits hidden in the first quarter report, and the actual operation of its business is much higher than that shown in the financial report. This profit will be released in the next quarter of 2020.递延收入

Changqiao Securities said deferred revenue rose 23 billion yuan this quarter. Deferred revenue can be simply understood as use

Financial technology and enterprise services suffered short-term setbacks and the growth slowed down

As of Q4 2019, financial technology and enterprise services have become Tencent's new growth engine in addition to its game business after Tencent has fully developed the industrial Internet. Financial technology and enterprise services increased by 22% to two hundred and sixty-four point seven five Billion yuan.

From Q1 to Q4 in 2019, the year-on-year growth rates of this sector are respectively 44%, 37%, 36% and 12%, which shows that the growth rate of this sector is slowing down.

According to the financial report, the growth is mainly driven by the growth of business payment and financial management platform revenue, as well as the revenue growth brought by cloud services to further grasp vertical industry opportunities such as video, education and retail.

However, the decline of income on a month on month basis is mainly due to the decrease of payment activities, especially offline transactions and withdrawals. In addition to the impact of offline payment, there is also a certain degree of delay in the implementation of cloud service projects, which slows down the business growth of financial enterprises. However, in the last week of April, Tencent's daily average business volume has returned to the level at the end of 2019.

Tencent's president, Liu Zhiping, said at the earnings conference that

This is mainly reflected in:,The epidemic has accelerated the digital transformation of the Internet and promoted the popularization of enterprise level products.

In terms of cloud services, Tencent launched telecommuting products during the epidemic

Wechat also optimizes industry solutions, further strengthens communication with wechat, and attracts more head customers including retail, education and public fields.

We haven't considered how this part will be realized in the future, but we do see more and more users.

In addition, health codes for epidemic prevention are also concerned. As of May 12, Tencent's epidemic prevention and health code related small programs had a total number of visits of over 23.5 billion and 8 billion people, covering more than 1 billion people in more than 400 cities in 21 provinces.


Tencent's earnings outlook,

Online advertising outperforms the market, and the role of small programs is becoming more and more obvious

Online advertising revenue reached 17.713 billion yuan, an increase of 32% year on year. Tencent said the increase mainly reflected the increase of advertising revenue brought by the increase of advertising inventory and exposure of Tencent mobile advertising alliance and wechat friend circle.

Q1 media advertising revenue was 3.121 billion yuan, down 10% year on year. Tencent said the decrease was mainly due to the weak macroeconomic situation and the suspension of sports events, resulting in a decrease in advertising revenue of video and news platforms.

Industrial Securities pointed out that the overall revenue of Q4 advertising industry in 2019 is declining. Apart from bilibilibili, the advertising revenue of other Internet advertising giants has declined year on year, and the revenue in the first quarter of 2020 is also unsatisfactory. Affected by large-scale public health events, the growth rate of advertising industry revenue slowed down, even showed negative growth.兴业证券

Statistics of advertising revenue of Internet companies by industrial securities

Southwest Securities Research Report said that since social advertising has no content purchase cost, its gross profit margin is higher and there is more room for improvement. With the recovery of the epidemic and the warming of the macro-economy, Tencent's advertisment growth is expected to continue to maintain a high-speed growth. In addition, applets and wechat search are expected to become a new incremental entry to advertising revenue.

At present, the number of daily active accounts of wechat apps has exceeded 400 million, and its business closed-loop is being improved. On February 17, wechat launched the public test of live broadcast component to help merchants complete the closed-loop sales of goods through live broadcast.

Asked if WeChat would develop its e-commerce business, Liu said

He also said Tencent will continue to consolidate the ecosystem of small programs, which are not in a hurry to realize. Applets help us increase traffic and build good service relationships for more business customers.

Although the Mini Programs live broadcast has not yet been released on a large scale, the potential remains. Mini Programs is one of the infrastructure of the company's ecosystem, Liu said, and a series of measures during the epidemic helped to boost payments and advertising in the long run.

He added,

(the first titanium media app of this article, author / Lu Yi, editor / Zhao Yuhang)

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