Tencent 2024 Second Quarter Results Presentation

Key insights

7 takeaways

01
Tencent reported a 53% year-over-year increase in non-IFRS net profit to 57.3 billion RMB, driven by a 5.4 percentage point expansion in operating margins to 36.3%.See it on page 17
02
Total revenue grew 8% year-over-year to 161.1 billion RMB, supported by a 19% surge in online advertising revenue.See it on page 13
03
Gaming revenue recovered with both domestic and international segments growing 9% year-over-year, bolstered by evergreen titles and the launch of DnF Mobile.See it on page 11
04
Gross profit reached 85.9 billion RMB, representing a 21% increase compared to the same period in 2023.See it on page 8
05
The FinTech and Business Services segment generated 50.4 billion RMB in revenue, a 4% increase fueled by cloud services and Video Accounts eCommerce.See it on page 14
06
WeChat and Weixin maintained a massive user base of 1.371 billion monthly active users as of March 31, 2024.See it on page 5
07
Tencent prioritized shareholder returns during the quarter by repurchasing approximately 104 million shares and distributing 28.9 billion RMB in cash dividends.See it on page 23

Summary

Tencent’s second quarter 2024 results demonstrate sustained financial growth, characterized by an 8% year-over-year increase in total revenue to 161.1 billion RMB. The company’s performance was bolstered by strong gains in online advertising, which rose 19% year-over-year, and a recovery in the gaming sector. Domestic and international gaming revenues both grew by 9% compared to the same period in 2023, driven by the success of evergreen titles and new releases such as DnF Mobile.

Profitability metrics showed significant improvement, with non-IFRS net profit attributable to equity holders reaching 57.3 billion RMB, a 53% increase year-over-year. This growth in profitability was supported by an expansion in the non-IFRS operating margin to 36.3%, up 5.4 percentage points from the previous year. Gross profit also saw a robust 21% increase, totaling 85.9 billion RMB. The company’s FinTech and Business Services segment contributed 50.4 billion RMB to total revenue, reflecting a 4% year-over-year increase, with cloud services and Video Accounts eCommerce transactions serving as primary growth drivers.

The report covers Tencent’s global operations, with a specific focus on the Chinese market, where the company maintains leadership in mobile community engagement, gaming, and digital content. As of March 31, 2024, WeChat and Weixin reported 1.371 billion monthly active users. The company continues to prioritize operational efficiency and shareholder returns, evidenced by the repurchase of approximately 104 million shares and the distribution of 28.9 billion RMB in cash dividends during the quarter. These results reflect a strategic shift toward high-margin revenue streams and disciplined cost management across its diverse portfolio of social, gaming, and enterprise services.