By Lei Jianping

Source: ID: touchweb

Leidi.com Lei Jianping reported on November 12

Tencent released its financial report today, which showed that Tencent's revenue in the third quarter of 2020 was 125.447 billion yuan (US $18.421 billion), an increase of 29% over the third quarter of 2019.

Tencent CEO Ma Huateng said:

Ma Huateng said,

Tencent Q3 value added services revenue 69.8 billion, up 38% year on year

Tencent's revenue from value-added services in the third quarter of 2020 was 69.8 billion, an increase of 38% over the same period of last year.

Tencent Q3 game revenue 41.422 billion, up 45% year on year

Tencent's value-added services include online game revenue. In the third quarter of 2020, Tencent's revenue from online games was 41.422 billion yuan, an increase of 45% over the same period of last year. Game revenue accounts for 33% of Tencent's total revenue.

The growth was mainly driven by revenue growth in smart phone games at home and abroad, including peace elite and King's glory.

In the third quarter of 2020, Tencent's total revenue from smart phone games (including those attributable to social network business) and PC client-side games were 39.173 billion and 11.631 billion, respectively.

Tencent's revenue from social networks in the third quarter of 2020 was 28.380 billion yuan, an increase of 29%. The growth reflected the revenue contribution from digital content services such as live broadcast service of tiger teeth, video member service and music member service, as well as the sales of virtual game props.

Tencent's Q3 network advertising revenue was 21.351 billion, up 16% year on year

Tencent's online advertising revenue in the third quarter of 2020 was 21.351 billion, up 16% year-on-year. Thanks to the wider adoption of Tencent's algorithm-based advertising solutions, the rapid growth of demand from industries such as education, Internet services and e-commerce platforms, and the recovery of demand in real estate and automobile industries.

Tencent's social and other advertising revenue in the third quarter of 2020 was 17.752 billion yuan, an increase of 21%. The increase was mainly due to the increase of inventory in wechat circle of friends and the rise of ECPM, and the good response of advertisers to Tencent's video advertising, which promoted the ECPM of mobile advertising alliance and promoted its revenue growth. Media advertising revenue fell 1% to 3.599 billion yuan. Compared with the previous quarter, the decline slowed down due to the release of main content of Tencent video and the increase of advertising stock and exposure of Tencent music platform.

Tencent's charge value-added service accounts increased by 25% to 213 million year-on-year, mainly due to the increase in the number of members of video and music content services. The number of video service members increased by 20% year-on-year to 120 million. Tencent's self-made TV series and cartoons, such as "30 just", "Jinxiu Nange" and "Douluo mainland third season", attracted many paying users.

In the third quarter of 2020, Tencent's financial technology and enterprise service business revenue was 33.255 billion yuan, up 24% year-on-year. This growth was mainly due to the growth of revenue from commercial payment and financial management platforms, while the growth of enterprise service income slowed down. This was due to the follow-up impact of the epidemic on offline project delivery and new contract signing, as well as the non recurrent adjustment of some IAAs contracts.

Tencent Q3 cost 68.8 billion, up 26% year on year

Tencent's cost in the third quarter of 2020 is 68.8 billion yuan, an increase of 26% over the same period of last year.

Tencent Q3's operating profit was 43.953 billion, up 70% year on year

According to international financial reporting standards, Tencent's operating profit in the third quarter of 2020 will be 43.953 billion yuan (US $6.454 billion), an increase of 70% over the same period of last year; the operating profit margin will rise from 27% in the same period of last year to 35%.

According to non international financial reporting standards, Tencent's operating profit in the third quarter of 2020 will be 38.116 billion yuan (US $5.597 billion), a year-on-year increase of 34%; and its operating profit margin will rise to 30% from 29% in the same period last year.

Tencent Q3 net profit of 38.899 billion, up 85% year on year

Tencent's profit in the third quarter of 2020 will be 38.899 billion yuan (US $5.712 billion), up 85% year on year; its net profit margin will rise from 22% in the same period of last year to 31%,

According to non international financial reporting standards, Tencent's profit in the third quarter of 2020 will be 33.325 billion yuan (US $4893 billion), a year-on-year increase of 33%; its net profit margin will rise to 27% from 26% in the same period last year.

In the third quarter of 2020, Tencent's EBITDA was 45.555 billion yuan, an increase of 27% over the same period of last year; the adjusted EBITDA was 47.849 billion yuan, an increase of 26% year-on-year.

On September 30, 2020, Tencent's net cash was 6.363 billion yuan. The fair value of Tencent's equity in listed investment companies (excluding subsidiaries) totaled 890.73 billion yuan.