According to the financial news app, Tencent Holdings (00700) announced its Q2 2024 performance, with revenue of RMB 161.117 billion yuan, a year-on-year increase of 8%, and a quarter-on-quarter increase of 1%. Gross profit was RMB 85.895 billion yuan, up 21% year-on-year and 2% quarter-on-quarter. The company's equity holders' net profit was RMB 47.63 billion yuan, up 82% year-on-year and 14% quarter-on-quarter. Non-IFRS equity holders' net profit was RMB 57.313 billion yuan, up 53% year-on-year and 14 percent quarter-on-quarter; basic earnings per share were RMB 5.112 yuan.

In the first half of 2024, revenue was RMB 320.618 billion yuan, up 7% year-on-year. Gross profit was RMB 169.765 billion yuan, up 22% year-on-year; equity holders' net profit was RMB 89.519 billion yuan, up 72% year-on-year; non-IFRS equity holders' net profit was RMB 107.578 billion yuan, up 53% year-on-year; and basic earnings per share were RMB 9.590 yuan.

The announcement stated that the Q2 2024 performance demonstrated the advantage of the group's platform and content integration strategy. The domestic market game revenue has resumed growth, while the international market game revenue has accelerated growth, due to the increase in user participation of some classic games and the successful release of some new games. Through the production of self-made TV dramas adapted from online novels, Tencent Video has achieved a significant increase in viewership and paying memberships. Looking ahead, the group will continue to invest in platforms and technologies including artificial intelligence, to create new business value and better serve user needs.

Among them, the revenue of value-added service business in Q2 2024 increased by 6% year-on-year to RMB 78.8 billion yuan. Due to the strong performance of PUBG MOBILE and the popularity of Supercell's games, international market game revenue increased to RMB 13.9 billion yuan, with growth rates of 9% according to the submitted and fixed exchange rates. The growth rate of the total turnover of international market games significantly surpassed that of revenue growth. Domestic market game revenue resumed year-on-year growth, increasing by 9% to RMB 34.6 billion yuan, mainly due to the growth in revenue of Fearless Agreement and the successful release of Dungeon and Warrior: Origin. The growth rate of the total turnover of domestic market games exceeded that of revenue growth. Social network revenue increased by 2% year-on-year to RMB 30.3 billion yuan, due to the increase in revenue from music and long-video paying memberships, as well as service fees of small game platforms and sales of mobile game virtual props. Some of this growth was offset by the decline in revenue from music and game live streaming services.

The revenue of the online advertising business in Q2 2024 increased by 19% year-on-year to RMB 29.9 billion yuan, mainly driven by the growth in revenue from short-video platforms and long videos. Due to the reduction of advertising budgets of some internet service companies, the revenue of the mobile advertising alliance decreased year-on-year.

The revenue of the fintech and enterprise services business in Q2 2024 increased by 4% year-on-year to RMB 50.4 billion yuan. The revenue growth rate of fintech services slowed down to low single-digit percentages, and the further slowdown in the revenue growth rate of commercial payment reflects the slow growth of consumer spending. Meanwhile, the improvement of risk management measures resulted in a decline in revenue from consumer loan services, while revenue from wealth management services achieved double-digit percentage growth. The business income of enterprise services achieved a growth rate of more than a dozen points, benefiting from the growth of cloud service business income (including the commercialization of enterprise WeChat) and the growth of technical service fees for the video account merchants.

The gross profit growth in Q2 is due to the growth of high gross margin revenue sources such as domestic market game revenue, short video advertising revenue, small game platform service fees and technical service fees for video account merchants. The gross profit growth of long video business and cloud service business also drove the overall gross profit growth. The gross margin increased from 47% in the same period last year to 53%.

As of June 30, 2024, the combined monthly active accounts of WeChat and WeChat reached 1.371 billion, a year-on-year increase of 3%; the monthly active accounts of QQ's mobile terminal reached 0.571 billion, flat year-on-year; and the number of registered accounts for value-added services increased by 12% year-on-year to 0.263 billion.