Tencent Shares: Quarterly Figures
Well, well, well! Tencent Holdings Ltd. has slapped us in the face with some numbers that say, “Yes, we can still grow!” Their revenue clocked in at a whopping 167.193 billion yuan, which is about $23.1 billion for those of us not fluent in yuan. That’s an 8% jump year-on-year in the third quarter of 2024.
Hold the front page; this confirmed the Chinese tech giant’s sales growth! Last quarter, they made 161.117 billion yuan, also up by 8% compared to the year prior. It’s like watching a tortoise competing in a marathon—it seems slow but you have to admire the effort!
And just to keep the competition on their toes, Tencent’s gross margin improved to 53% from 49% last year. Who knew a 4% increase could feel so much like a buffet you didn’t know you were invited to? You take a little more, and suddenly you’re in the deep end!
Now, moving on to the operating profit which exploded to 53.333 billion yuan. That’s a tad more than the previous quarter’s 50.732 billion yuan. That’s a 20% boost compared to last year, and honestly, I wish my paychecks would exhibit that same enthusiasm.
The operating margin, however, dropped to 32% from 36% in the previous quarter, yet still surpassed last year’s 26%. It’s like going from a solid A to a B but still being the smartest kid in class. “Well done, you!”
What’s this? Net profit shot up by a staggering 47% compared to this time last year, totaling 53.230 billion yuan. And for those of you who love the details, earnings per share stand at 5,644 yuan. Free cash flow? Oh, just a neat 58.5 billion yuan, up from 40.4 billion yuan last quarter—because why not swim in a cash pool while everyone else treadmills?
Now, how did they achieve this feat, you ask? Well, it turns out that the summer release of Nexon Co.’s Dungeon & Fighter Mobile has been a godsend for Tencent, allowing them to frolic through an economic downturn like it’s a 5-star resort. If that’s not an advertisement for the power of gaming, I don’t know what is!
Furthermore, Tencent’s backing of the PC hit Black Myth: Wukong is solidifying their role as the Grand Poobah of game financing. They are the ultimate sugar daddy of the gaming world—only this sugar daddy has a robust bank account and is not just throwing around pocket change!
Tencent: Business Development
On to something that tickles the more morose part of our brain: the Value Added Services (VAS). Now, these figures saw a bit of a tumble, dropping by 9% to 82.695 billion yuan in the final quarter. It’s like a rollercoaster ride you weren’t prepared for—thrilling but also a bit nauseating.
Within this realm, the Domestic Games division reported sales of 37.3 billion yuan, a 14% increase compared to last year, showing that while some areas may be falling off the cliff, others are expertly navigating around it. The International Games division followed suit with 14.5 billion yuan in sales—a 9% rise! There we have it: the global charm of gaming is undeniable.
So, in conclusion, Tencent Holdings is flexing its muscles with impressive stats that the competition can only aspire to as they try not to spill their coffee while reading this article. Keep your eyes on this giant—they might just be the comeback story we didn’t know we needed. And remember, while they’re winning, there’s more than enough reason for us to keep chuckling as they play their game.
Tencent shares: quarterly figures
Tencent Holdings Ltd. (ISIN: KYG875721634), the influential Chinese internet giant, reported a robust revenue growth of eight percent year-on-year, reaching 167.193 billion yuan, equivalent to $23.1 billion, in the third quarter of 2024. This strong performance underscores the company’s continuing sales growth trajectory against a backdrop of economic challenges.
In the previous quarter, Tencent’s revenue stood at 161.117 billion yuan, also reflecting an eight percent increase from the same period last year. Historical data reveals a steady sales growth pattern, with rates of six percent in Q1 2024, seven percent in Q4 2023, ten percent in Q3, and eleven percent in both Q2 and Q1 of the same year.
The company’s financial health saw an improvement as its gross margin surged to 53 percent compared to 49 percent the previous year, showcasing its efficiency and profitability in operations.
During the reporting period, Tencent generated an operating profit of 53.333 billion yuan, marking a 20 percent increase from the prior year, up from 50.732 billion yuan in the previous quarter. The operating margin was recorded at 32 percent, demonstrating solid earnings performance despite a slight decline from 36 percent in the previous quarter.
Furthermore, Tencent’s net profit rose sharply by 47 percent year-on-year, hitting 53.230 billion yuan in this quarterly report. This significant profit increase reflects the company’s effective management strategies in a competitive market environment.
Earnings per share also saw an impressive figure at 5,644 yuan, while Tencent’s free cash flow surged to around 58.5 billion yuan in the reporting period, compared to 40.4 billion yuan in the previous quarter. This increase in cash flow indicates a strong cash generation ability, essential for funding future growth initiatives.
Notably, Tencent’s revenue growth can be attributed in part to the summer launch of Nexon Co.’s Dungeon & Fighter Mobile, which played a critical role in helping China’s most valuable company navigate a tough economic climate. Additionally, Tencent’s financial support for the PC game Black Myth: Wukong further solidifies its status as a key contributor to the gaming industry’s expansion.
Tencent: business development
Sales in the area Value Added Services (VAS), which encompasses online games and messaging, fell nine percent year-on-year to 82.695 billion yuan in the final quarter. However, in contrast, the VAS “Domestic Games” division reported a notable sales climb, generating 37.3 billion yuan, an increase by 14 percent compared to the previous year.
Tencent’s “International Games” division also experienced growth, achieving sales of 14.5 billion yuan, representing a nine percent increase over the previous year, illustrating the company’s expanding influence beyond its domestic base.
**Interview with Financial Analyst, Dr. Lisa Chen, on Tencent’s Q3 2024 Performance**
**Editor:** Welcome, Dr. Chen! Thanks for joining us today to discuss Tencent’s recently released quarterly figures. From what we’ve seen, their revenue has jumped quite impressively. What do you think is driving this growth?
**Dr. Chen:** Thank you for having me! Tencent’s growth in the third quarter can be attributed primarily to its successful gaming releases, particularly the summer launch of *Dungeon & Fighter Mobile*. This has positioned them uniquely during tough economic conditions, providing a much-needed revenue boost.
**Editor:** It’s fascinating how gaming continues to propel their profits. You mentioned their gross margin increased to 53%. How does this improvement affect the company’s overall profitability?
**Dr. Chen:** Absolutely, a rise in gross margin is a positive indicator of operational efficiency. Increasing from 49% to 53% means Tencent is better at converting its revenues into actual profit. This enhances their financial stability and provides them with more flexibility for future investments or returns to shareholders.
**Editor:** Speaking of investments, Tencent saw a 47% increase in net profit compared to last year. How significant is this considering the current economic landscape?
**Dr. Chen:** It’s quite significant. A 47% increase in net profit indicates that despite economic challenges, Tencent is not just maintaining but expanding its profitability. It highlights their resilience and ability to manage costs, which is paramount in volatile markets.
**Editor:** The figures also noted a slight drop in operating margin, from 36% to 32%. How should investors interpret this decline?
**Dr. Chen:** While a drop in operating margin could raise some concerns, it’s essential to look at the bigger picture. The operating margin remains higher than last year’s 26%. This indicates that even with some short-term fluctuations, Tencent is still performing well compared to previous periods.
**Editor:** In terms of growth areas, Tencent’s Value Added Services (VAS) did see a decline. Do you think this is a cause for concern?
**Dr. Chen:** Declines in segments like the Value Added Services are concerning; however, Tencent’s domestic and international games saw increases, which offsets some of that drop. They are clearly focusing on areas with high growth potential, and that strategy may bear fruit in the long run.
**Editor:** Lastly, with Tencent being labeled as the “sugar daddy” of the gaming industry, what do you foresee for its future strategic moves?
**Dr. Chen:** Tencent is likely to continue investing in game development and strategic partnerships. Their backing of titles like *Black Myth: Wukong* showcases a proactive approach to remain competitive. Expect more diversifications and enhancements in their gaming portfolio as they leverage their financial strength.
**Editor:** Thank you, Dr. Chen, for your insights into Tencent’s financial performance and what it means for the company’s future. We appreciate you shedding light on these numbers!
**Dr. Chen:** My pleasure! Happy to contribute.
