Production | Tiger Sniff Business Group
Author ｜ Knock Grid
After the Hong Kong stock market on March 18, Tencent announced its fourth quarter and full-year financial results for 2019. According to the financial report, Tencent’s fourth-quarter revenue was 105.767 billion yuan, an increase of 25% year-on-year, exceeding the market expectations of 103.69 billion yuan; net profit was 21.582 billion yuan, an increase of 52% year-on-year, which was less than the market’s expected of 22.767 billion yuan.
Looking into the whole year of 2019: Tencent achieved total revenue of 377.29 billion yuan, an increase of 21% year-on-year; the profit attributable to equity owners of the company was 93.31 billion yuan, an increase of 19% year-on-year. As with Q4, the revenue was higher than market expectations, and net profit was lower than expected.
This is the first time that Tencent’s single quarter revenue has exceeded the 100 billion mark. Although the profit was lower than market expectations, Q4 performed well overall, making the entire annual report look like a peace of mind. Compared with the declining revenue growth rate in 2018 and 2019, Tencent has now entered a relatively stable growth period.
It is worth noting that Tencent spent some space in the financial report to describe the company’s related business and public welfare performance during the new crown epidemic. This sudden epidemic has indeed brought opportunities for Tencent’s online education, telecommuting, telemedicine and other cloud businesses, as well as games, video and other businesses.Apps such as Tencent Meetings, Corporate WeChat, Tencent Classes, and Tencent Documents have ushered in A wave of unexpected traffic. The Q1 earnings report released two months later is also worth looking forward to.
As of the close of the Hong Kong stock market on March 18, Tencent’s stock price was HK $ 334, a decrease of 4.52%, and its market value was approximately HK $ 3.2 trillion.
Game, B-end two blossom
Tencent’s revenue is composed of four major segments of value-added services, financial technology and corporate services, online advertising and other businesses, of which “value-added services” account for the largest proportion, and are composed of online games and social networks.
The total revenue of value-added services in 2019 will reach approximately 200 billion yuan, an increase of 13% year-on-year, accounting for 53% of Tencent’s total revenue. Among them, online game revenue was 114.7 billion yuan, an increase of 10% year-on-year; social network revenue was 85.28 billion yuan, an increase of 17% year-on-year. Games account for less than one-third of the company’s total revenue.