Tencent Holdings Ltd · HKEX:700
Tencent — Q3 2024 Earnings Presentation
23 slides from Tencent's earnings presentation, Nov 13, 2024
Slide 1: 2024 Third Quarter Results Presentation
2024 Third Quarter Results Presentation Nov 13, 2024
Slide 2: Cautionary Note
Cautionary Note This presentation may contain forward-looking statements relating to the forecasts, targets, outlook, estimates of financial performance, opportunities, challenges, business developments, business plans and growth strategies of Tencent Holdings Limited (the “Company” or “Tencent”) an
Slide 3: 1. Overview
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Slide 4: Financial Highlights
Financial Highlights In billion RMB 3Q2024 3Q2023 YoY 2Q2024 QoQ Total Revenue 167.2 154.6 +8% 161.1 +4% Value-added Services 82.7 75.7 +9% 78.8 +5% Social Networks 30.9 29.7 +4% 30.3 +2% Domestic Games1 37.3 32.7 +14% 34.6 +8% International Games 14.5 13.3 +9% 13.9 +5% Marketing Services2 30.0 25.7
Slide 5: Key Services Update
Key Services Update Weixin & WeChat • #1 mobile community China • MAU at 1,382m • #1 by users and revenue QQ Global Games • Mobile devices MAU at • #1 by revenue 562m Mobile Payment Premium Content Digital • #1 by MAU & DAU FinTech • #1 by paid Content subscriptions including video, music, literatur
Slide 6: 2. Business Review
1. Overview 2. Business Review
Slide 7: Revenue
Revenue Revenue Growth (YoY %) +13% +8% +0.1% -3% -2% +0.5% +11% +11% +10% +7% +6% +8% +8% Revenue by Segment (billion RMB) 167.2 159.5 161.1 1% 154.6 155.2 1% 150.0 149.2 1% 145.0 1% 1% 142.4 144.2 1% 1% 140.1 1% 1% 2% 135.5 134.0 1% 32% 1% 1% 31% 33% 32% 34% 35% 32% 30% 33% 32% 33% 32% 32% 18% 17%
Slide 8: Gross Profit
Gross Profit Gross Profit Growth (YoY %) +11% -2% -9% -8% -1% +7% +19% +22% +23% +25% +23% +21% +16% Gross Profit by Segment (billion RMB) 88.8 85.9 83.9 76.5 77.6 29% 70.8 28% 68.2 28% 62.7 62.0 61.9 28% 31% 57.8 57.1 57.9 25% 26% 20% 24% 18% 26% 19% 23% 24% 17% 24% 18% 13% 17% 22% 17% 16% 16% 12%
Slide 9: Value-added Services
Value-added Services In billion RMB Social Networks +9% +5% • Revenue was up 4% YoY, driven by increased revenue from music subscriptions, YoY QoQ app-based games item sales and Mini Games platform service fees, partially 82.7 82.7 offset by decreased revenue from music- and games-related live strea
Slide 10: Communications & Social Networks
Communications & Social Networks • GMV facilitated by Mini Programs grew high teens % YoY and exceeded RMB2 trillion in 3Q24, benefitting from better coverage and solutions for use cases including food ordering, electric vehicle charging, and medical services a Mini Programs • Enriched our content o
Slide 11: Domestic Games
Domestic Games Flagship evergreen games delivered healthy growth • HoK: Gross receipts grew YoY in 3Q24, benefitting from Chinese Valentine-themed event in collaboration with Tencent Comics IP Fox Spirit Matchmaker, and top-tier martial arts-themed outfit • Peacekeeper Elite: Gross receipts increase
Slide 12: International Games
International Games PUBG MOBILE Brawl Stars VALORANT • Gross receipts grew by double- • Continued among top 3 mobile • Gross receipts increased by over digit % YoY and achieved record games by DAU in international 30% YoY in 3Q24, benefitting from high in 3Q24, benefitting from markets1; gross recei
Slide 13: Marketing Services
Marketing Services In billion RMB Overall +17% +0.4% • Revenue grew 17% YoY, with strength in games and eCommerce YoY QoQ categories, outweighing weakness in real estate and food & beverage. Paris Olympics cushioned industry-wide weakness in brand ad revenue in 3Q24, but this positive factor will be
Slide 14: FinTech and Business Services
FinTech and Business Services In billion RMB FinTech Services +2% +5% • Revenue was flat YoY, decrease in payment revenue offset by increase in YoY QoQ wealth management services revenue • For commercial payment, number of transactions continued to increase at healthy rate YoY while average value pe
Slide 15: 3. Financial Review
1. Overview 3. Financial Review
Slide 16: Income Statement
Income Statement In billion RMB 3Q2024 3Q2023 YoY 2Q2024 QoQ Revenue 167.2 154.6 +8% 161.1 +4% COPS (78.4) (78.1) +0.3% (75.2) +4% Gross profit 88.8 76.5 +16% 85.9 +3% Operating expenses (38.5) (34.2) +12% (36.7) +5% Other gains, net1 3.0 2.0 +47% 1.5 +100% Operating profit1 53.3 44.3 +20% 50.7 +5%
Slide 17: Non-IFRS Adjustments
Non-IFRS Adjustments Net (gains)/ Amortisation IFRS losses from Impairment Non-IFRS In billion RMB SBC of intangible SSV & CPP3 Tax effects YoY change QoQ change 3Q2024 investee provisions2 3Q2024 assets companies1 Operating profit 53.3 6.4 - 1.4 - 0.2 - 61.3 +19% +5% Share of profit of associates &
Slide 18: Gross Margins
Gross Margins 52.6 53.3 53.1 49.5 50.0 47.5 44.1 44.2 45.5 42.1 43.2 42.6 40.1 Overall Gross Margin (%) 57.3 57.0 57.5 53.9 54.0 55.5 53.7 53.0 51.7 50.4 50.6 49.8 48.7 Value-added Services (%) 56.8 54.8 55.6 52.3 53.0 46.4 46.3 48.9 42.7 44.2 41.7 40.6 36.7 Marketing Services (%) 45.6 47.6 47.8 43.
Slide 19: Operating Expenses
Operating Expenses S&M R&D G&A (excl. R&D) in billion RMB in billion RMB in billion RMB +19% +3% +9% +4% +14% +9% YoY QoQ YoY QoQ YoY QoQ 17.9 17.3 17.9 16.5 11.2 11.2 9.8 10.2 9.4 9.2 9.4 7.9 3Q23 3Q24 2Q24 3Q24 3Q23 3Q24 2Q24 3Q24 3Q23 3Q24 2Q24 3Q24 Non-IFRS Non-IFRS Non-IFRS 3Q24 S&M grew by 22%
Slide 20: Non-IFRS Operating Margin
Non-IFRS Operating Margin 36.8 36.6 36.3 33.4 31.7 30.9 30.0 27.3 27.3 25.6 25.1 25.2 21.7 (%) 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 20
Slide 21: CAPEX, FCF and Cash Position
CAPEX, FCF and Cash Position In billion RMB 3Q2024 3Q2023 YoY 2Q2024 QoQ Operating CAPEX 14.7 6.6 +122% 7.2 +104% Non-operating CAPEX 2.4 1.4 +74% 1.5 +57% Total CAPEX 17.1 8.0 +114% 8.7 +96% Operating Cash Flow 78.1 65.0 +20% 54.1 +44% Less: CAPEX Paid (12.0) (5.8) +108% (5.9) +103% Payments for me
Slide 22: 4. Q&A
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Slide 23: Thank you!
Tencent Holdings Limited 2024 Third Quarter Results Presentation Thank you! https://www.tencent.com/ir