Tencent has announced their quarter on 2024 financials for the period ending March 31st and it’s good news.
Revenues are up 6% year-on-year, gross profit is up 23% year-on-year, non-IFRS is up 30% year-on-year and non-IFRS profit attributable to equity holders of the company is up 54% year-on-year.
Total revenues were RMB159.5 billion ($22.5 billion) up 6% over the first quarter of 2023 year-on-year.
“During the first quarter of 2024, several of our leading games in China and internationally started to benefit from team reorganisations we put in place, resulting in an increase in games gross receipts and creating a foundation for our games revenue to resume growth in future quarters,” said Tencent CEO and chairman Ma Huateng.
“We continue to cultivate high quality revenue streams including advertising in Video Accounts and Weixin Search, Mini Games platform service fees, and eCommerce technology service fees, contributing to our gross and operating profit growth outpacing our revenue growth.
“Executing on our commitment to return excess capital to shareholders, we stepped up our buyback plan, and are on track to repurchase over HKD100 billion of our shares in 2024, as well as paying an increased dividend, while investing in AI technology, platform enhancements and high production value content.”
Mobile focus
While the entertainment giant has fingers in every media pie from music to movies the company made the effort to pin their success on the performance of their two flagship domestic games, Honour of Kings and Peacekeeper Elite, both of which registered year-on-year growth in gross receipts in March 2024, as new monetisation cadence and enhanced content design started to yield results.
In addition to the power pair, several domestic games attained record high gross receipts during the quarter, including Fight of the Golden Spatula, CrossFire Mobile and Arena Breakout.
Meanwhile Tencent’s investment in Supercell continues to pay off as several of their games achieved increases in usage and gross receipts.
In particular the Q1 report highlights the performance of Brawl Stars whose daily active users more than doubled year-on-year, with gross receipts more than quadrupling year-on-year internationally.
Plus an upgraded advertising technology platform to help advertisers establish advertising campaigns
more effectively, and new generative AI-powered advertising creation tools becoming available to all advertisers, were spotlighted as reasons for success.
