Tencent lifts revenues in Q1 but profit growth slows amid pandemic

News Broadband China 13 MEI 2020
Tencent lifts revenues in Q1 but profit growth slows amid pandemic
Tencent reported higher revenues for the first quarter, but also a slower profit growth as it faced headwinds caused by the coronavirus pandemic. The company said it allocated CNY 2 billion worth of donations to covid-19 relief initiatives in China and globally. Looking ahead, the company expects in-game consumption activities to normalise as people return to work. It also sees some headwinds in the online advertising industry.

Revenues for the quarter lifted 26 percent from the year before to CNY 108.06 billion. The operating profit went up by 1 percent only however to CNY 37.26 billion, with the margin off to 34 percent from 43 percent. The profit attributable to equity holders increased by 6 percent to CNY 28.96 billion. The adjusted EBITDA grew 27 percent to CNY 45.19 billion. Capex went 37 percent higher to CNY 6.15 billion.  The company had total cash at the end of March of CNY 220.58 billion. 

Revenues from VAS went 27 percent higher to CNY 62.43 billion, with online game revenues climbing 31 percent to CNY 37.29 billion, including smartphone game revenue at CNY 34.76 billion. Social network revenues lifted 23 percent to CNY 25.13 billion while revenues from online advertising advanced by 32 percent to CNY 17.71 billion. At FinTech and Business Services, revenues increased 22 percent to CNY 26.47 billion. 

During the quarter, Tencent’s combined MAU of Weixin and WeChat went up 3.2 percent to 1.20 billion. Smart device MAU of QQ grew 7.2 percent to 693.5 while fee-based VAS subscription advanced 9.6 percent to 197.4 million. 

 

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Tencent

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Sales figures, Financial figures

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