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90 billion is good? How hard is it for Tencent to please the market?

via:虎嗅网     time:2019/8/15 0:13:10     readed:129

In the first half of the year, Tencent's total revenue was 174.286 billion yuan, an 18% increase over the previous year, while non-GAAP's net profit was 44.455 billion yuan, an increase of 25% over the previous year.

Tencent's share price is "leading" this semi-annual report. The Hong Kong stock, known as the "king of stocks", rose nearly 3% in the early morning of August 14 and then narrowed down. Tencent shares rose 1.8% to close at HK$340 as of Aug. 14.

It is worth noting that the reason why Tencent can maintain its "decent" net profit is thanks to its investment income - in Q2, Tencent's other net income is 4.038 billion yuan, 1.532 billion yuan more than the same period last year, an increase of 61.1% over the same period last year. At the same time, Tencent is also "cutting back on clothes and food" and reducing the cost of promotion. Sales and marketing expenditure in this quarter was 4.718 billion yuan, a 25.8% drop compared with the same period last year.

The volume of Tencent is huge, and it still keeps about 20% growth. But why is the quarterly revenue of nearly 90 billion yuan still "not up to market expectations"? Are you too strict with "good students" Tencent?

Tencent launched 10 games this quarter

At present, Tencent's revenue is divided into four major sectors, including value-added services, financial technology and corporate services, online advertising and others. Value-added services have long been the bulk of Tencent's revenue, consisting of online gaming revenue and social networking revenue.

Cartography: Tiger Sniff

However, due to the strong growth of revenue in other sectors and the weakness of the game business, the proportion of value-added services in total revenue has been declining in the past two years, which is 54% in the current quarter. Two years ago (2017 Q2), value-added services accounted for 65%.

In this quarter, revenue from online games reached 27.307 billion yuan, an 8% increase over the same period last year, while revenue from social networks reached 20.773 billion yuan, an increase of 23% over the same period last year. In the game sector, the revenue of hand games is 22.2 billion yuan, up 26% from the same period last year; the revenue of PC games is 11.7 billion yuan, down 9% from the same period last year.

The revival of the game business is due to the redistribution of the version number. In addition, Tencent released 10 games in Q2, including AR game "Catch the Evil Together", "The Evil's Tail", "Rachel" and so on. The most anticipated "Peace Elite" was launched in May. Tencent said in its earnings report that it had successfully launched commercialization and introduced season tickets, but due to the delays, its contribution to Q2's revenue was limited.

More noteworthy is Tencent's performance in the next quarter.After all, a big event in the third quarter of the game circle is Tencent's official announcement and announcement.NintendoThe cooperation will sell the state-owned version of Switch in the Chinese market, and develop game software with Nintendo Banner Game Company Bao Kemeng to launch host games. In addition, in terms of hardware, Tencent will also work withASUSCooperate with Qualcomm and other companies to jointly develop gamesMobile phone

Advertising is the more disappointing part of the earnings report.

In the second quarter, Tencent's online advertising revenue was 16.4 billion yuan, up only 16% from a year earlier. Tencent said in its earnings report that this is mainly due to the challenges of the macro environment and the intensification of industry competition, and predicted that the negative impact of the current business environment will continue in the second half of the year.

Among them, media advertising revenue is only 4.4 billion yuan, down 7% year on year; social advertising revenue is 12 billion yuan, up 26% year on year - for Tencent advertising, such growth rate is unsatisfactory. The growth rate of advertising business in last year is mostly between 40% and 60%. It can also be seen that the macro environment of 2019 will affect the advertising industry. It's loud.

Are financial and To B businesses growing fast enough?

Starting from Q1 in 2019, Tencent added a new revenue section of "Financial Technology and Enterprise Services", and began to disclose digital payments, financial services and services separately.Cloud servicesIncome, slowly show their To B report card.

In the second quarter, the revenue of financial technology and enterprise services was 22.9 billion yuan, an increase of 37% compared with the same period last year. The proportion of total revenue of Tencent rose further to 26%, which has exceeded the revenue of smartphone games for Tencent (22.2 billion yuan). Tencent said in its earnings report that the growth was mainly driven by the growth in business payments and revenue from cloud services, but the reserve balance would no longer generate interest when transferred to the People's Bank of China, thus partially offsetting the growth.

Tencent To B business now bears the heaviest expectation of Tencent after the major restructuring of its organizational structure on September 30 last year. Therefore, the information disclosed in the financial report also reflects to some extent whether Tencent's industrial Internet road is smooth or not.From the Q2 transcript, the shadow of the reserve monitored is still there. Can the 37% growth rate be considered fast? Is it enough to support investors'expectations?

The most striking figure in this earnings report is actually related to Wechat, which still has a certain growth in such a large user base. As of June 30, 2019, the merged monthly active accounts of WeChat and Wechat reached 1,132.7 million, up 7.1% year on year and 1.9% year on year.

Finally, Tencent's progress is a mystery. The term "cloud business" appears only once in this financial report. Tencent said that cloud business "grew steadily year on year", but did not disclose detailed data.

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