Tencent has reported its first quarter performance for 2024 with a total revenue of 1.6 trillion yuan, representing a 6% increase from the same quarter in the previous year. Net profit according to IFRS standards saw a substantial 62% increase to 419 billion yuan, marking the highest growth rate since 2021.
Revenue from the gaming business in China experienced a 2% decline to 345 billion yuan, attributed to Honor of Kings’ high base in 2023 due to Chinese New Year activities, and a decrease in popularity of Peacekeeper Elite in the past quarter. However, titles like VALORANT, Fight of the Golden Spatula, and Lost Ark continued to show strong growth. Meanwhile, the international gaming business grew by 3% to 136 billion yuan, driven by games from Supercell and PUBG MOBILE.
Tencent’s CEO, Ma Huateng, stated that the team restructuring had a positive impact on the revenue and profit of the gaming business both in China and internationally, reflecting a promising direction for future growth in the next quarter.
The online advertising business of Tencent saw a substantial 26% revenue increase to 265 billion yuan, attributed to the implementation of AI in developing targeted advertising. Customers from gaming, internet, and consumer goods sectors have increased their advertising expenditure.
TLDR: Tencent’s first quarter performance for 2024 reflected a 6% revenue increase and a significant 62% net profit growth. The gaming business in China saw a decline, while international business showed growth. Online advertising revenue surged by 26% due to AI implementation for targeted ads.
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