Tencent today announced its third quarter results report for 2018. Tencent gross sales in the quarter was 80.595 billion yuan, a 24% increase over the same period last year. Net profit was 23.33 billion yuan, up 30% from the same period last year, surpassing market expectations.
1. Total sales amounted to 80.595 billion Yuan, up 24% from the same period of last year.
2. Non-GAAP net income attributable to equity holders of the company was $ 19,111 million (US $ 285 million), an increase of 15% over the same period last year.
3. According to GAAP, net income attributable to equity holders of the Company was $ 23.33 billion, an increase of 30% over the prior year, exceeding market expectations.
4. Online advertising business sales reached 16,247 million yuan, a 47% increase from the previous year.
5. Other business revenues increased by 69% to 2.209 billion yuan, mainly due to an increase in payment-related services and cloud services.
6. WeChat and WeChat's monthly active accounts were 1082 million, up 10.5% over the same period last year.
Q3 2018 Financial Analysis (from Tencent)
Revenue grew 24% from the prior year due to growth in payment-related services, online advertising, digital content sales and cloud services.
The value-added services business in the third quarter of 2018 reached 44.49 billion yuan, up 5% from the previous year. Online game sales declined 4% to RMB 25.813 billion, partly offset by increased smartphone game sales, reflecting lower PC game sales. Social network revenue increased 19% to 182.36 billion US dollars, an increase of 18%, mainly due to increased sales of digital content services such as live streaming and video streaming subscriptions.
Online advertising revenue for the third quarter of 2018 increased by 47% from the previous year to 1,647 million yuan. Social and other advertising revenues increased 61% to RMB11.557 billion, reflecting the increase in advertising resources such as WeChat Fellowships and new forms of small advertising as well as mobile advertising alliances and QQ. Increase in income. Media ad sales increased 23% to RMB1.9 billion due to increased Tencent video ad sales due to the success of TV series and handmade variety shows.
Other business revenue for the third quarter of 2018 was $ 20.29 billion, up 69% from the prior year, driven by increased payment services and cloud services.
Operating profit increased 22% from the previous year. Non-GAAP operating profit grew 4% YoY.
The company's equity attributable to shareholders increased 30% year-on-year as a result of an increase in investment-related net profit compared to the same period of the previous year. Non-GAAP shareholders' profits increased 15% year-over-year.
– QQ monthly active accounts decreased by 4.8% over the same period last year to 833 million.
– The number of QQ Smart Terminal's monthly active accounts increased 6.9% year-on-year to 6.98 million.
– WeChat and WeChat's monthly active accounts totaled 10.82 billion, up 10.5% over the same period last year.
– The number of QQ smart terminals' monthly active accounts decreased by 3.8% year-on-year to 531 million people.
– Registered value-added services accounted for 145 million, an increase of 23% over the same period last year.