The following is a summary of the Tencent Holdings (TCEHY) Q1 2024 Earnings Call Transcript:
Financial Performance:
Tencent reported Q1 2024 total revenue of RMB 160 billion, an increase of 6% year-on-year and 3% quarter-on-quarter.
Gross profit reached RMB 84 billion, a growth of 23% year-on-year and 8% quarter-on-quarter.
Non-IFRS operating profit was up to RMB 59 billion, a growth of 30% year-on-year and 19% quarter-on-quarter.
Non-IFRS net profit attributable to equity holders was RMB 50 billion, a 54% rise year-on-year and 18% quarter-on-quarter rise.
Diluted EPS increased by 66% year-on-year to RMB 4.386, showing robust earnings growth.
The overall gross margin was 53%, up seven percentage points year-on-year, signifying improved profitability.
Business Progress:
Tencent registered significant user engagement, with total user time spent on mini programs increasing by over 20% year-on-year in the first quarter.
The firm plans on releasing high production value games this year, which include DnF mobile, Tarisland, Need for Speed mobile, and One Piece mobile.
Tencent observed increased adoption of cloud media services and enterprise SaaS products, indicating expanded product penetration.
Substantial progress was seen with scaling up Hunyuan, with plans to deploy it in more services.
Advertising business showed healthy momentum, with the company gaining market share due to increased AI usage.
Tencent emphasized diversification of its game studios as a strength, indicating their commitment towards unique attributes rather than standardized processes.
Despite potential slowing of fintech revenue, especially in payments, Tencent projects growth in wealth management services amidst macroeconomic challenges and a focus on risk management.
More details: Tencent IR
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