Q2 2024 Tencent Holdings Ltd Earnings Call Transcript
Key Points
- Total revenue increased by 8% year-on-year to RMB161 billion, demonstrating strong financial performance.
- Gross profit grew by 21% year-on-year, driven by high-margin revenue streams and cost-saving initiatives.
- Domestic games revenue resumed growth, up 9% year-on-year, with successful new titles like DnF Mobile.
- International games revenue also increased by 9% year-on-year, benefiting from robust performance of titles like PUBG Mobile.
- Video accounts' ad revenue increased over 80% year-on-year, fueled by rising short video engagement and live streaming options.
- The deceleration in consumption spending in China is a headwind to advertising eCPM pricing, impacting brand advertising and ad network trends.
- Average transaction value in commercial payments declined year-on-year due to slow consumer spending, affecting fintech revenue growth.
- Consumer loan services revenue decreased year-on-year as Tencent adopted more cautious credit extension policies.
- Operating CapEx increased by 144% year-on-year, driven by investment in GPU and CPU servers, impacting free cash flow.
- Net cash position decreased by 22% quarter-on-quarter, primarily due to share repurchase and dividend payments.
Good day. And good evening. Thank you for standing by. Welcome to Tencent Holdings Limited 2024 second quarter results announcement webinar. I'm Wendy Huang from Tencent IR team. (Event Instructions) And please be advised that today's webinar is being recorded.
Before we start the presentation, we would like to remind you that it includes forward-looking statements, which are underlined by a number of risks and uncertainties and may not be realized in the future for various reasons. Information about general market conditions is coming from a variety of sources outside of Tencent's control.
This presentation also contains some unaudited non-IFRS financial measures that should be considered in addition to, but not as a substitute for, measures of the group's financial performance prepared in accordance with IFRS. For a detailed discussion of risk factors and IFRS measures, please refer to our disclosure documents on the IR section of our website.
Let me introduce the management team on the webinar tonight. Our Chairman and
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