Earnings Report is Out | TENCENT Q1 Revenue Reaches 150 Billion, Strong Recovery in Online Advertising and Financial Technology

On Wednesday, TENCENT released its first quarter financial report.

TENCENT's Q1 revenue was RMB 150 billion, estimated at RMB 146.29 billion; adjusted net profit was RMB 32.5 billion, a year-on-year increase of 27% and a quarter-on-quarter increase of 10%, estimated at RMB 33.22 billion.

Q1 Operating Data

Q1 Financial Data

TENCENT's Q1 revenue was RMB 150 billion, a year-on-year increase of 11% and a quarter-on-quarter increase of 3%.

Q1 adjusted earnings per share were RMB 3.353, compared to RMB 2.62 in the same period last year.

Q1 revenue cost increased by 4% year-on-year to RMB 81.8 billion.

Q1 sales and marketing expenses decreased by 13% year-on-year to RMB 7 billion, reflecting a reduction in marketing expenses.

Q1 general and administrative expenses decreased by 8% year-on-year to RMB 24.6 billion, mainly due to a decrease in employee costs (including share-based payment-related expenses).

Q1 equity holders' net profit attributable to the company increased by 10% year-on-year to RMB 25.8 billion.

Q1 non-IFRS net profit attributable to equity holders of the company increased by 27% year-on-year to RMB 32.5 billion.

TENCENT's free cash flow in Q1 was RMB 51.8 billion.

The fair value of TENCENT's listed investment companies (excluding subsidiaries) equity in Q1 was RMB 472.8 billion, and the book value of non-listed investments was RMB 332.5 billion.

Sub-item Business Data

Q1 value-added service revenue was RMB 79.3 billion, a year-on-year increase of 9%.

International market game revenue increased by 25% to RMB 13.2 billion, and excluding the impact of exchange rate fluctuations, the growth rate was 18%; domestic market game revenue increased by 6% to RMB 35.1 billion; social network revenue increased by 6% to RMB 31 billion.

Network advertising revenue was RMB 21 billion, a year-on-year increase of 17%, benefiting from the new revenue source of video accounts, the increase in advertising in small programs, and the recovery of mobile advertising alliances.

Financial technology and enterprise service revenue was RMB 48.7 billion, a year-on-year increase of 14%; financial technology services accelerated year-on-year growth, mainly due to the recovery of commercial payment activities brought about by China's consumption rebound. The revenue of enterprise service business turned positive year-on-year during the period.

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