(Fighting against New Crown Pneumonia) "Home Economy" boosts Tencent's performance soaring in the first quarter, making 300 million yuan a day
China News Agency, Beijing, May 14 (Reporter Chen Kangliang) The first quarter results released by Chinese technology giant Tencent show that despite the outbreak of the new coronary pneumonia epidemic in mainland China in the first quarter, Tencent ’s performance has benefited from the “house economy” under the epidemic rise.
According to the financial report released by Tencent Holdings on the 13th, its revenue in the first quarter was 108.056 billion yuan (RMB, the same below), an increase of approximately 26% year-on-year; the first quarter net profit reached 28.896 billion yuan, and the non-GAAP net profit was 270.79 100 million yuan, a year-on-year increase of about 29%. According to this calculation, in the first quarter, Tencent made more than 300 million yuan a day.
After the results were announced, Tencent's share price rose sharply on the 14th, and its market value once surpassed Alibaba, becoming China's largest market value company.
Specifically, Tencent's revenue mainly comes from three parts: value-added services, financial technology and corporate services, and online advertising. Among them, the largest value-added service is the value-added service, and an important piece of the service is online games. Data shows that in the first quarter, Tencent ’s online game revenue increased by 31% year-on-year to 37.298 billion yuan. Online advertising also experienced significant growth, with a year-on-year increase of 32% to 17.713 billion yuan in the first quarter. The financial technology service and cloud service revenue decreased sequentially.
When talking about the growth of the above business, Tencent emphasized the impact of the home order and house economy during the epidemic. Tencent said that the game played an important role in relieving users and helping each other, especially during the family order. Online advertising revenue recorded a year-on-year increase, reflecting the increase in the length of time consumers spent in Tencent ’s main applications during the home order.
Looking to the future, Tencent pointed out that with the continuous resumption of work in various places, it is expected that the game user usage time and in-game consumption activities will return to normal levels, but also believe that the game industry has structurally expanded its long-term audience and appeal.
Guoxin Securities analyst Wang Xueheng said that driven by the game business, Tencent's performance in the first quarter was excellent. The impact of the epidemic on the company's financial technology and cloud business is short-term, and it has not affected its market structure. With the recovery of work and consumption, the recovery of related businesses in the second quarter is expected to be optimistic. In the mid-to-long term, Tencent's core business has ample reserves of mobile games, and there is a large space for mobile games to enter overseas, which is expected to drive long-term growth. (Finish)