TENCENT(HK:00700)2022-11-16 08:40Revenue and Profit - Revenue for the three months ended September 30, 2022, was RMB 140,093 million, a decrease of 2% year-over-year[1] - Operating profit for the three months ended September 30, 2022, was RMB 51,593 million, down 3% year-over-year[1] - Revenue for the nine months ended September 30, 2022, was RMB 409,598 million, a decrease of 2% year-over-year[2] - Operating profit for the nine months ended September 30, 2022, was RMB 118,877 million, down 27% year-over-year[2] - Basic earnings per share for the nine months ended September 30, 2022, was RMB 8.595, a decrease of 37% year-over-year[2] - In Q3 2022, the company's total revenue decreased by 2% year-on-year to RMB 140.093 billion[12] - The revenue from value-added services in Q3 2022 declined by 3% to RMB 72.727 billion, accounting for 52% of total revenue[13] - The international gaming revenue grew by 3% year-on-year to RMB 11.7 billion, while domestic gaming revenue fell by 7% to RMB 31.2 billion[13] - The company reported a net profit of RMB 38.842 billion for Q3 2022, compared to RMB 40.075 billion in the same period last year[12] - The company reported a year-on-year increase of 30% in income tax expenses to RMB 7.1 billion, reflecting the provision for income tax for the quarter[17] User Engagement - The number of WeChat and WeChat combined monthly active accounts reached 1,308.9 million, a year-over-year increase of 3.7%[3] - Daily active accounts for mini-programs exceeded 600 million, with a year-over-year growth of over 30%[4] Cost Management - Total revenue cost in Q3 2022 decreased by 2% year-on-year to RMB 78.1 billion, reflecting strict control over channel and distribution costs, cloud project deployment costs, and content costs[14] - Sales and marketing expenses decreased by 32% year-on-year to RMB 7.1 billion, reflecting stricter control over marketing expenditures[16] - General and administrative expenses increased by 11% year-on-year to RMB 26.5 billion, driven by increases in R&D expenses, employee costs, and office expenses[16] - The profit attributable to equity holders of the company increased by 1% year-on-year to RMB 39.9 billion, reflecting the effectiveness of business streamlining and cost efficiency measures[17] Cash Flow and Investments - The company's free cash flow for Q3 2022 was RMB 27.6 billion, with net cash flow from operating activities at RMB 41 billion[28] - The net cash flow from operating activities for the nine months ended September 30, 2022, was RMB 110,488 million, a decrease of 10.1% compared to RMB 123,935 million in the same period of 2021[39] - The net cash flow used in investing activities for the same period was RMB (86,533) million, an improvement from RMB (144,051) million in 2021[39] - The company made additional investments totaling approximately RMB 83.98 billion in new and existing associates primarily engaged in game development, fintech, and other internet-related businesses during the nine months ended September 30, 2022[63] Financial Position - As of September 30, 2022, the company's cash and cash equivalents amounted to RMB 160.177 billion, a decrease from RMB 184.658 billion as of June 30, 2022[28] - The net debt increased to RMB 27.271 billion as of September 30, 2022, compared to RMB 20.429 billion as of June 30, 2022, primarily due to foreign exchange translation differences[28] - Total assets decreased from RMB 1,612,364 million as of December 31, 2021, to RMB 1,478,143 million as of September 30, 2022, representing a decline of approximately 8.3%[34] - Total equity decreased from RMB 876,693 million to RMB 818,406 million, reflecting a decrease of about 6.6%[36] Shareholder Returns - The company declared a final dividend of HKD 1.60 per share for the year ended December 31, 2021, totaling HKD 15.26 billion, which was paid within the nine months ended September 30, 2022[60] - The company repurchased a total of 42,840,000 shares at a total cost of approximately HKD 13.26 billion during the three months ended September 30, 2022[83] Employee and Compensation - The total employee compensation cost for the three months ended September 30, 2022, was RMB 27.39 billion, an increase from RMB 25.96 billion for the same period in 2021[84] - The company had 108,836 employees as of September 30, 2022, compared to 107,348 employees a year earlier[84] Market Strategy - The company plans to continue expanding its market presence and investing in new technologies to enhance service offerings and operational efficiency[40]