Impressive Growth in Profit and Revenue for Tencent Holdings in Q1 2024

Tuesday, 14 May 2024, 19:34
Tencent Holdings (OTC: TCEHY) experienced a 5% rally as its high-margin businesses excelled in the first quarter of 2024, surpassing analyst profit estimates. Despite a slight decline in video games revenue, Tencent's other segments, including online advertising and cloud services, displayed robust growth. The company's focus on profitability led to a remarkable 54% increase in adjusted net income available to common shareholders.
https://store.livarava.com/c5893177-1229-11ef-a6c2-63e1980711b2.jpg
Impressive Growth in Profit and Revenue for Tencent Holdings in Q1 2024

Impressive profit growth

Like other major Chinese tech companies, Tencent has shifted its strategy to prioritize profitability amidst economic challenges in China. In Q1, the company's revenue increased by 6% while gross margin expanded significantly by 8 percentage points. Non-GAAP gross profits surged by 23%, highlighting Tencent's emphasis on high-profit segments like online advertising.

Business Segment Strength

Aside from online advertising, Tencent's video and music subscriptions saw substantial growth rates in Q1, along with positive performance in cloud services. The company's commitment to enhancing user engagement through AI technology resulted in increased advertiser targeting capabilities on the WeChat platform.

Hidden Gaming Segment Strength

Despite a slight decline in gaming revenue, Tencent's gross receipts from gaming segments showed promising growth, with international gaming gross receipts up by 34%. Tencent's valuation remains attractive even after the stock surge, making it an appealing investment choice in the Chinese market.

Do you want to advertise here? Contact us

Related posts

Do you want to advertise here? Contact us
Do you want to advertise here? Contact us
Newsletter

We carefully select news from the world of finance and publish it for our users. We understand the importance of reliable and up-to-date information for people in the financial world. Do you want to receive news in a convenient format and always have it at hand — subscribe to our newsletter and make your analytical work more effective.

Subscribe