Understanding the Market | Tencent opens nearly 5% higher, first-quarter financial report greatly exceeds expectations, video account user engagement increases by 80%

Zhitong
2024.05.16 01:29
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Tencent opened nearly 5% higher, and as of the time of writing, it is up 4.77% to HKD 400, with a turnover of HKD 21.93 billion. On the news front, Tencent released its first-quarter financial report for this year. The data shows that Tencent's first-quarter revenue was RMB 159.5 billion, a year-on-year increase of 6.3% and a quarter-on-quarter increase of 3%; net profit was RMB 41.9 billion, a year-on-year increase of 62% and a quarter-on-quarter increase of 55%; adjusted net profit was RMB 50.27 billion, a year-on-year increase of 54%. The company stated that it will focus on returning surplus capital to shareholders, increase share repurchases, execute a plan to repurchase shares worth over HKD 100 billion by 2024, enhance dividends, and continue to invest in AI technology, improve platforms, and produce high-value content. According to the financial report, revenue from online advertising business was RMB 26.506 billion, a year-on-year increase of 26.44%. Tencent mentioned that it mainly benefited from the increase in advertising revenue brought by the rapid development of Video Number, Mini Programs, Official Accounts, WeChat Search, and the improvement in revenue quality driven by AI technology. In addition, the total user time of Video Number increased by over 80% year-on-year, expanding product categories and incentivizing more content creators to participate in live streaming to strengthen the ecosystem of Video Number live streaming

According to the information from Zhitong Finance and Economics APP, Tencent (00700) opened nearly 5% higher. As of the time of publication, it has risen by 4.77% to HKD 400, with a turnover of HKD 21.93 billion.

On the news front, Tencent released its financial report for the first quarter of this year. The data shows that Tencent's first-quarter revenue was RMB 159.5 billion, a year-on-year increase of 6.3% and a quarter-on-quarter increase of 3%; net profit was RMB 41.9 billion, a year-on-year increase of 62% and a quarter-on-quarter increase of 55%; adjusted net profit was RMB 50.27 billion, a year-on-year increase of 54%. The company stated that it will focus on returning surplus capital to shareholders, increase the repurchase efforts, execute a share repurchase plan exceeding HKD 100 billion by 2024, enhance dividends, and continue to invest in AI technology, improve platforms, and produce high-value content.

The financial report shows that revenue from online advertising business was RMB 26.506 billion, a year-on-year increase of 26.44%. Tencent stated that it mainly benefited from the rapid development of new advertising revenue brought by Video Number, Mini Programs, Official Accounts, WeChat Search, and the improvement in revenue quality driven by AI technology. In addition, the total user time of Video Number increased by over 80% year-on-year, expanding product categories and incentivizing more content creators to participate in live streaming for product sales, strengthening the ecosystem of Video Number live streaming for product sales

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