By Kosaku Narioka
Tencent Holdings reported third-quarter results on Wednesday. Here is what you need to know.
NET PROFIT: Tencent’s net profit fell 9.4% from a year earlier to 36.18 billion yuan ($4.99 billion) for the three months ended Sept. 30. That exceeded the estimate of CNY32.47 billion in a poll of analysts by Visible Alpha.
REVENUE: Tencent said third-quarter revenue grew 10% from a year earlier to CNY154.625 billion, virtually matching the estimate of CNY153.97 billion in the Visible Alpha poll.
WHAT WE WATCHED:
–GAMES BUSINESS: Tencent’s gross profit from its games and social-network business increased 12% from a year earlier to CNY42.045 billion, as revenue rose 4.2% to CNY75.75 billion. International-game revenue climbed 14% to CNY13.3 billion, while domestic-game revenue rose 5% to CNY32.7 billion, thanks partly to the recent launches of role-playing game Lost Ark and shooter game Valorant.
–ADVERTISING: Gross profit from its online advertising business climbed 35% to CNY13.45 billion, as revenue grew 20% to CNY25.72 billion, owing partly to strong demand for video ads. Tencent said it started offering generative artificial intelligence tools for advertising partners to produce ad visuals.
–FINTECH: Gross profit from its fintech and business-services segment rose 43% to CNY21.31 billion, as revenue increased 16% to CNY52.05 billion, thanks to higher commercial payment activities and increased revenue from wealth management services.
Write to Kosaku Narioka at [email protected]