Since the game version was reopened at the end of last year, Tencent’s main game business has gradually returned to growth.
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Tencent’s second-quarter revenue was lower than expected, mobile game is strong, and advertising is weak
Tencent disclosed its second-quarter results after the Hong Kong stock market on August 14. The revenue increased 21% year-on-year to 88.821 billion yuan, far below the market expectation of 93.409 billion yuan; net profit increased 19% year-on-year to 24.136 billion yuan. Higher than market expectations of 21.101 billion yuan. Tencent’s revenue growth this quarter was mainly driven by commercial payment and financial technology business, mobile games and digital content sales (ie live broadcast and Tencent video member subscription).
Tencent’s core gaming business continued to pick up this quarter, with revenue up 8% year-on-year. It was mainly driven by mobile games. Mobile game revenue increased by 22% year-on-year and end-games fell by 9%. The second largest business payment and cloud service revenue grew at the fastest rate of 37%. Online advertising revenue grew by 16% this quarter, and Tencent said that this business was dragged down by the weak macro environment and short video competition for advertising demand.
Since the game version was reopened at the end of last year, Tencent’s main game business has gradually returned to growth. Tencent’s mobile game has performed strongly this quarter, and “Perfect World” and “Peace Elite” contributed revenue increments. In the second half of the year, under the support of different categories of new games such as “Kart Run”, “Dragon Fantasy” and “Game of Thrones”, the story of Tencent’s domestic mobile game market will continue. Last month, Tencent was rumored to increase the revenue share of Android channel game distribution. If the agreement is reached, the profitability of Tencent’s game business will continue to increase.
Since May, the negative impact of macro tension on advertising business has intensified, and Tencent’s market value has shrunk a lot. The second half of the year is expected…
Editor’s comment: In addition to the advertising business, the fundamentals of Tencent’s other businesses are fairly stable, but…
Jingdong Q2 transcript: The core data is growing in an all-round way, and there are still variables in the future
On August 13, Jingdong released its second quarter results for 2019, and all core data increased. In terms of single-quarter revenue, Jingdong achieved a score of 150.3 billion yuan, exceeding analysts’ expectations and the highest in the historical single season. In addition, Jingdong Q2’s net profit reached 3.6 billion yuan, a year-on-year growth rate of 644%, also set a record high. Affected by the results, as of the close of the US stock market on the 13th, Jingdong shares rose 12.89%.
Revenue performance is one of the highlights of Jingdong this season, except for historical records.Compared with the revenue growth rate of 20.9% in the first quarter of 2019, the revenue growth rate of 22.9% in this quarter has rebounded. However, compared with the revenue growth rate of more than 30% in the first two quarters of 2018, Q2 can only be said to stop the downward trend.
Another highlight is logistics. Jingdong CEO Liu Qiangdong pointed out at the earnings report that Jingdong Logistics is close to a profit balance and investment in the first-tier cities has ended. This shows that at least in the first-tier cities, Jingdong Logistics can already make money. Liu Qiangdong also mentioned the “opening of logistics”, that is, Jingdong Logistics has entered the market of third- and sixth-tier cities in recent years, and the layout of this aspect has begun to pay off. However, …
Editor’s comment: The sinking market has become an important battleground for all major platforms. Liu Qiangdong also stressed at the earnings conference call that Jingdong will be in the future…
This article is from the paid section “Daily Business Featured” – August 14
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