BofA Securities analyst Lei Zhang reiterated a Buy rating on Tencent Music Entertainment Group – ADR TME with a price target of $15, down from $18.Tencent Music reported a fiscal second-quarter 2024 revenue of $985.00 million (7.16 billion Chinese yuan), missing the analyst estimate of $996.68 million (7.12 billion Chinese yuan). The EPS of 16 cents (1.19 Chinese yuan) aligned with the consensus estimate. Tencent Music delivered a broadly inline second-quarter result, Zhang noted. At the same time, the comp ...

Financial Data and Key Metrics Changes - Total revenue for Q2 2024 was RMB161 billion, up 8% year-on-year and 1% quarter-on-quarter [6][23] - Gross profit was RMB86 billion, up 21% year-on-year and 2% quarter-on-quarter [6][23] - Non-IFRS operating profit was RMB58 billion, up 27% year-on-year and flat quarter-on-quarter [7][24] - Net profit attributable to equity holders was RMB57.3 billion, up 53% year-on-year [24] - Diluted EPS was RMB6.014, up 55% year-on-year [25] Business Line Data and Key Metrics Changes - Value-added services (VAS) represented 49% of total revenue, with domestic games at 21% and international games at 9% [8] - Online advertising accounted for 19% of total revenue, while FinTech and business services made up 31% [8] - Domestic games revenue grew by 9% year-on-year to RMB35 billion, driven by titles like Valorant and DnF Mobile [11] - International games revenue also increased by 9% year-on-year to RMB14 billion, benefiting from PUBG Mobile and Supercell games [11] Market Data and Key Metrics Changes - The combined MAU of Weixin and WeChat reached 1.37 billion [7] - Video accounts ad revenue increased over 80% year-on-year, driven by rising short video engagement [19] - The number of transactions in the payment business continued to grow at a healthy rate, but average transaction value declined due to slow consumer spending [20][68] Company Strategy and Development Direction - The company continues to invest in platforms and technologies, including AI, to create new business value [6] - A focus on enhancing the e-commerce ecosystem within Weixin, integrating various functionalities to drive user engagement and merchant value [39] - Long-term investments in content, particularly in gaming and drama series, are expected to yield benefits as the industry recovers [33] Management's Comments on Operating Environment and Future Outlook - Management noted that the advertising market is expected to improve as consumer spending picks up [18][20] - The company anticipates continued growth in higher-margin revenue streams, although the multiplier effect on gross profit growth may decelerate [44] - The current consumption environment is seen as cyclical, with expectations for recovery driven by government policies [70] Other Important Information - Operating CapEx increased by 144% year-on-year, driven by investments in GPU and CPU servers [27] - The company had a net cash position of RMB71.8 billion, down 22% quarter-on-quarter due to share repurchases and dividend payments [28] Q&A Session Summary Question: Can management elaborate on the recent upgrade of the advertising technology platform? - Management confirmed that the upgrade allows for a more comprehensive user interest graph, improving click-through rates and attracting higher ad spend [30][32] Question: Will supportive comments from the state council on digital content change R&D resource deployment? - Management stated that long-term investments in content have already been made, and they will continue to focus on strategic investments rather than short-term reactions [33] Question: What is the e-commerce strategy for video accounts? - Management indicated that growth in live-streaming e-commerce remains solid, and they are building a comprehensive Weixin e-commerce ecosystem [37][39] Question: How should G&A expenses and tax rates be modeled going forward? - Management explained that G&A expenses are expected to increase by single digits, and the effective tax rate for 2024 is projected to be between 18% to 20% [40][41] Question: What are the drivers behind the increase in share of profit from associates? - Management noted that the increase is due to contributions from associates like PDD, and they expect year-on-year growth to moderate in the second half of the year [46]

This article has been reviewed according to Science X's editorial process and policies . Editors have highlighted the following attributes while ensuring the content's credibility: Credit: Unsplash/CC0 Public Domain Chinese internet giant Tencent announced on Wednesday an 82 percent surge in second-quarter net profit, its biggest jump since late 2020, after a resurgence in its gaming business. Tencent is one of the most valuable players in China's tech industry, operating the country's ubiquitous WeChat ...

Tencent showed off its tech at the 2023 World Artificial Intelligence Conference in Shanghai, July 8, 2023.Tencent beat second-quarter top and bottom line estimates as growth in its key gaming division accelerated.Here's how Tencent did in the June quarter against LSEG consensus estimates:Revenue: 161.12 billion Chinese yuan ($22.5 billion) versus 160.77 billion yuan expected.Profit attributable to equity holders of the company: 47.63 billion Chinese yuan versus 39.95 billion yuan expected.Revenue was up 8% ...

Tencent Music Entertainment (NYSE:TME) stock is falling on Tuesday after the online music entertainment platform company reported earnings for the second quarter of 2024.The bad news for investors in TME stock starts with its adjusted earnings per share of 65 cents. That’s a miss next to Wall Street’s estimate of 1.18 yuan. Adding to this trouble is revenue of 7.16 billion yuan. That only just came in above analysts’ revenue estimate of 7.14 billion yuan.Tencent Music Entertainment also notes that its Q2 20 ...

Key TakeawaysTencent Music Entertainment Group posted a big decline in second-quarter revenue for its social entertainment services, which includes its karaoke app WeSing.The Chinese company also posted a drop in monthly average users.Tencent has been hurt by tough restrictions from Beijing on streaming services. American depositary receipts (ADRs) of Tencent Music Entertainment Group (TME) sank Tuesday after the Chinese music streaming service posted worse-than-expected social entertainment services revenu ...

腾讯控股 20240802 原文 2024 年 08 月 03 日 17:51 发言人 00:00 的责任，国海证券就此保留一权利。在任何情况下，国海证券及其员工对使用本次会议信息或内容所引发 的任何直接或间接损失概不负责。市场有风险投资需谨慎。 发言人 00:17 各位投资者朋友大家晚上好，我是国海证券海外互联网的分析师尹璐。然后我今天给各位领导汇报一下腾 讯的一个投资逻辑和近期的一个基本面的一个分析。首先的话，我们还是回顾一下腾讯的一个基本的业务 结构。然后我们是根据公司 2023 年的一个财报口径，对它的整体的业务结构做了一个拆分。公司财报口 径的话是包括了三大核心的板块，增值业务、网络广告和金融科技和企业服务。增值业务这边的话在整体 的收入中占比是接近 50%。 发言人 00:50 这块的话它是划分为两个细分的业务，在线游戏和社交网络。在线游戏的话目前去年的一个收入是接近 1800 亿，然后在整体收入中占比是达到 30%，那他在利润中的占比会更高一些，在 40%以上。在线游戏 的话目前公司一个财报口径是划分为国内游戏跟海外游戏。然后海外游戏的一个占比是达到了整体在线游 戏的一个 30%以上。然后过去几 ...

腾讯控股 20240802_原文 2024 年 08 月 03 日 17:51 发言人 00:00 的责任，国海证券就此保留一权利。在任何情况下，国海证券及其员工对使用本次会议信息或内容所引发 的任何直接或间接损失概不负责。市场有风险投资需谨慎。 发言人 00:17 各位投资者朋友大家晚上好，我是国海证券海外互联网的分析师尹瑞。然后我今天给各位领导汇报一下腾 讯的一个投资逻辑和近期的一个基本面的一个分析。首先的话，我们还是回顾一下腾讯的一个基本的业务 结构。然后我们是根据公司 2023 年的一个财报口径，对它的整体的业务结构做了一个拆分。公司财报口 径的话是包括了三大核心的板块，增值业务、网络广告和金融科技和企业服务。增值业务这边的话在整体 的收入中占比是接近 50%。 发言人 00:50 这块的话它是划分为两个细分的业务，在线游戏和社交网络。在线游戏的话目前去年的一个收入是接近 1800 亿，然后在整体收入中占比是达到 30%，那他在利润中的占比会更高一些，在 40%以上。在线游戏 的话目前公司一个财报口径是划分为国内游戏跟海外游戏。然后海外游戏的一个占比是达到了整体在线游 戏的一个 30%以上。然后过去几 ...

在任何情况下国海证券及其员工对使用本次会议信息或内容所引发的任何直接或间接损失概不负责市场有风险投资需谨慎 各位投资者朋友大家晚上好我是国海真实海外互联网的分析师尹瑞然后我今天给各位领导汇报一下腾讯的一个投资逻辑和近期的一个基本面的一个分析首先的话我们还是回顾一下腾讯的一个基本的业务结构然后我们是根据公司2023年的一个财报口径对它的整体的业务结构做了一个拆分公司财报口径的话是包括了三大核心的板块增值业务网络广告和金融科技和企业服务 增值业务这边的话在整体的收入中占比是接近50%这块的话它是划分为两个细分的业务在线游戏和社交网络在线游戏的话目前去年的一个收入是接近1800亿然后在整体收入中占比是达到30%它在利润中的占比会更高一些在40%以上在线游戏的话目前公司一个财报口径是划分为国内游戏跟海外游戏 然后海外游戏的一个占比是达到了整体在线游戏的一个30%以上然后过去几年也是在一个持续扩张的一个状态我们预计它的一个占比会持续的一个提升那增值业务的第二个板块是社交网络社交网络里面有两大这个业务系分的业务一个是游戏收入第二个是非游戏收入 那社交网络里面的这个游戏收入的话它跟在线游戏的游戏收入是有一些区别的它主要是包 ...

Tencent Games was one of the exhibitors at ChinaJoy in Shanghai on July 26, 2024.BEIJING — When it comes to gaming, the use of ChatGPT-like generative artificial intelligence is still in an exploratory phase, according to Liang Chen, general manager of Tencent Cloud's internet industry department.Parent company Tencent is one of the world's largest gaming companies and owns U.S.-based Riot Games, home of popular titles such as League of Legends and Valorant. Chen said his role is to help game manufacturers ...