Core Viewpoint - Tencent's gaming business has shown significant growth under its "Evergreen Game Strategy," with 2024 revenue reaching 197.7 billion yuan, a year-on-year increase of 9.9% [1][36]. Group 1: Financial Performance - Tencent's international gaming revenue reached 58 billion yuan, growing by 9%, while domestic revenue was 130.7 billion yuan, up by 10% [1]. - The "Evergreen Game Strategy" has resulted in an increase in Tencent's long-standing game portfolio from 8 to 14 titles globally over three years [1][13]. Group 2: Key Games and Growth - Flagship titles like "Honor of Kings" and "Peacekeeper Elite" continue to be major revenue drivers, while "Teamfight Tactics" has shown strong growth after four years [3]. - The newly launched game "Delta Action," which debuted in September last year, has already surpassed 40 million registered players and achieved a daily active user count of over 12 million within six months [3][21]. Group 3: Strategic Focus - Tencent's management has emphasized focusing on maintaining and growing existing evergreen games while developing new titles with the potential to become evergreen [5][11]. - The company aims to concentrate resources on fewer games, ensuring strong positioning and high production value to exceed player expectations [6][11]. Group 4: Market Trends and Development - The gaming industry is experiencing rising production costs, with successful games needing to differentiate themselves through gameplay, visuals, or narrative [8][10]. - Tencent's "Evergreen Game" concept is a response to the industry's shift towards long-term product viability, emphasizing quality over quantity [11][22]. Group 5: Game Development and Innovation - "Delta Action" exemplifies flexible and differentiated development strategies, incorporating popular gameplay elements and continuous iteration to maintain player interest [14][15]. - The game has achieved significant market traction, ranking in the top 5 of gaming popularity charts and generating substantial revenue from both PC and mobile platforms [19][32]. Group 6: Future Outlook - Tencent's focus on cross-platform gaming is expected to drive future growth, with "Delta Action" serving as a model for successful cross-platform integration [26][32]. - The company's stock has seen a cumulative increase of 43.26% in 2024, reflecting positive market sentiment towards its gaming strategy [37].

Core Viewpoint - The article discusses Tencent's recent financial performance and strategic direction in the gaming industry, highlighting its growth in both domestic and international markets, as well as its focus on long-lasting games and internal restructuring to enhance operational efficiency [2][3][10]. Group 1: Financial Performance - In Q4 2024, Tencent reported revenue of 1724.5 billion RMB, a year-on-year increase of 11%, with adjusted net profit rising by 30% to 553.1 billion RMB [2]. - For the full year 2024, Tencent achieved total revenue of 6602.57 billion RMB, up 8% year-on-year, and net profit of 1940.73 billion RMB, reflecting a 68% increase [2]. - The gaming segment generated revenue of 492 billion RMB in Q4 2024, with domestic gaming revenue growing by 23% to 332 billion RMB and international revenue increasing by 15% to 160 billion RMB [5]. Group 2: Gaming Business Growth - In 2024, Tencent's total gaming revenue reached 1977 billion RMB, a 9.9% year-on-year increase, with domestic revenue at 1397 billion RMB (10% growth) and international revenue at 580 billion RMB (9% growth) [6]. - Key contributors to domestic growth included titles like "Valorant," "Naruto," "Teamfight Tactics," and "League of Legends Mobile," along with new revenue from "Dungeon & Fighter: Origin" and "Delta Force" [6]. - The game "Teamfight Tactics" maintained strong growth, with Q4 revenue increasing by 30% year-on-year, achieving double-digit growth for eight consecutive quarters [6]. Group 3: Strategic Initiatives - Tencent's "Evergreen Game" strategy, which focuses on games with annual revenue exceeding 4 billion RMB and high daily active users, has expanded from 12 to 14 titles [11]. - The company is restructuring its internal organization to enhance operational efficiency and focus on long-lasting games, with adjustments made to various departments [13][14]. - Tencent's gaming division has seen a rise in daily active users for its top five games during the recent Spring Festival compared to the previous year, indicating increased popularity [14]. Group 4: International Market Performance - Tencent's international gaming revenue growth was driven by strong performances from "PUBG MOBILE" and Supercell games, with Supercell reporting a total revenue of 2.8 billion euros (approximately 3 billion USD) in 2024, a 77% year-on-year increase [9]. - The acquisition of Supercell nine years ago for 8.6 billion USD has laid a solid foundation for Tencent's subsequent international expansion [9]. Group 5: Social Network and Other Business Growth - Tencent's social network business, including music streaming and video services, saw a 2% revenue increase due to growth in mini-game platform service fees and mobile game in-app purchases [15]. - The number of paid members for Tencent Video reached 113 million, maintaining its leading position in China's long video market, while Tencent Music's subscription revenue grew by 25.9% to 15.23 billion RMB [15].