Planck Quantum
Tencent (OTCPK:TCEHY) (OTCPK:TCTZF) third-quarter revenue rose 10% year-over-year as games segment saw an improvement.
The Chinese company’s stock climbed about 5% to HK$322.60 on the Hong Kong Stock Exchange. Prosus (OTCPK:PROSY) (OTCPK:PROSF), which is a main shareholder in Tencent, saw its stock rise about 3% on the Euronext Amsterdam stock exchange.
On a non-IFRS basis, profit attributable to equity holders of the company grew 39% year-over year to RMB44.9B ($6.3B); Non-IFRS EPS was RMB4.657, compared to RMB3.306.
On an IFRS basis, profit attributable to equity holders of the company fell 9% year-over year to RMB36.2B ($5B).
Sales for the video game company and operator of WeChat messaging service grew 10% to RMB154.63B ($21.5B).
“During the third quarter of 2023, we achieved solid and high quality revenue growth, notable margin expansion, and structural operating leverage. Relatively new services such as Video Accounts and Mini Games contributed high margin revenue streams while we re-focused away from less-scalable activities,” said Tencent’s Chairman and CEO Ma Huateng.
Revenue from VAS (value-added services) segment grew 4% year-over year to RMB75.75B. International Games revenues increased 14% to RMB13.3B, or up 7% excluding the impact of currency movements.
The company said it saw revenue recovery for PUBG Mobile, with healthy revenue contributions from Goddess of Victory: NIKKE, VALORANT, and Triple Match 3D, versus decreased revenue from Tower of Fantasy, due to a tough comparison against its launch quarter in the same period last year.
Domestic Games revenues increased 5% to RMB32.7B, steered by the recent launches of Lost Ark and VALORANT, and increased revenues from evergreen titles Honour of Kings and DnF.
Revenues from Online Advertising rose 20% year-over-year to RMB25.72B, driven by robust advertising demand for Video Accounts, its mobile ad network, and Weixin Search, with growth in local services and FMCG categories.
Meanwhile revenues from FinTech and Business Services in the third-quarter grew 16% year-on-year to RMB52.04B.
The combined monthly active users, or MAU, of the messaging/social media apps Weixin and WeChat rose 2% yearr-over-year to 1.336B. Quarter-over-quarter there was a 0.7% increase.
At Weixin, Video Accounts’ total video views climbed over 50% year-on-year. Video subscriptions fell 3% year-over-year, but grew 1% quarter-on-quarter, to 117M.
Mobile device MAU of instant messaging service QQ fell 3% year-over-year to 558M. Fee-based VAS registered subscriptions rose 7% to 245M.
Among other updates, CEO Ma Huateng said that the company is increasing investment in its AI models, providing new features to its products and enhancing its targeting capabilities for content and advertising.
