Tencent Holdings, one of the world’s leading technology companies, announced its third-quarter financial results on Wednesday. Here are the key highlights:
Net Profit: Despite challenging market conditions, Tencent’s net profit for the three months ended September 30 was 36.18 billion yuan ($4.99 billion), showing a slight decline of 9.4% compared to the same period last year. This figure exceeded the estimate of 32.47 billion yuan predicted by analysts.
Revenue: Tencent reported a strong revenue growth of 10% year-on-year, reaching 154.625 billion yuan. This result almost matched the estimated revenue of 153.97 billion yuan forecasted in a recent poll conducted by Visible Alpha.
Key Focus Areas
During the third quarter, Tencent closely monitored and achieved notable progress in several key areas:
Tencent’s games and social-network division exhibited promising performance. The gross profit from this segment rose by 12% to reach 42.045 billion yuan, while revenue increased by 4.2% to 75.75 billion yuan. Notably, international-game revenue experienced a substantial growth of 14% to 13.3 billion yuan. The launch of popular games such as Lost Ark and Valorant contributed significantly to domestic-game revenue, which rose by 5% to 32.7 billion yuan.
The online advertising business of Tencent witnessed remarkable growth during the third quarter. Gross profit in this sector surged by 35%, amounting to 13.45 billion yuan, while revenue grew by an impressive 20% to reach 25.72 billion yuan. Strong demand for video ads played a significant role in this growth. Furthermore, Tencent introduced generative artificial intelligence tools for advertising partners to enhance the production of ad visuals.
Fintech and Business Services
Tencent’s fintech and business-services segment experienced substantial growth during the third quarter. Gross profit increased by an impressive 43% to 21.31 billion yuan. This growth was primarily driven by higher commercial payment activities and increased revenue from wealth management services. Overall, segment revenue rose by 16% to 52.05 billion yuan.
For more information on Tencent Holdings’ financial performance, please contact the company directly.