Game business growth slows down, Tencent continues to switch between new and old engines



Since the strategic focus of consumer Internet and industrial Internet was put forward, the proportion of Tencent’s current Taurus business value-added services and newly established financial technology and enterprise services has fluctuated. In the first quarter, Tencent’s two new and old engines, financial technology, enterprise services and value-added services, saw a rise and a fall in revenue growth and proportion. At the same time, Tencent has also delineated the future investment direction: enterprise services, games and short video content, which will cause frequent switching between new and old engines.

The proportion of value-added services decreased

On May 20, Tencent released its financial report for the first quarter of 2021, with a revenue of 135.3 billion yuan, a year-on-year increase of 25%; The net profit under non international accounting standards was 33.118 billion yuan, up 22% year on year.

On the whole, Tencent’s revenue is still composed of four parts: value-added services, online advertising, financial technology and enterprise services, and others. Value added services are still Tencent’s largest revenue source.

Subdivided into businesses, Tencent’s value-added service revenue decreased from 58% in the first quarter of 2020 to 54% in the first quarter of 2021. The revenue of financial technology and enterprise services increased from 25% to 29%. The revenue of other two online advertising and other businesses remained unchanged, 16% and 1% respectively.

In the first quarter of 2021, Tencent’s value-added service revenue increased by 16% year on year to 72.4 billion yuan. Among them, game revenue increased by 17% to 43.6 billion yuan, and social network revenue increased by 15% to 28.8 billion yuan. If calculated by game type, Tencent’s total mobile game revenue (including mobile game revenue attributable to social network business) and PC client game revenue in the first quarter of 2021 were 41.5 billion yuan and 11.9 billion yuan respectively.

Revenue has been rising, but comparing the growth rate and the proportion of revenue, we will find subtle changes. For example, in the first quarter of 2021, Tencent’s value-added service revenue accounted for 54%, 4% less than that of the same period last year. The revenue of value-added services increased by 16% year on year, 11 percentage points less than 27% in the same period last year.

In the six quarters from the fourth quarter of 2019 to the present, Tencent’s value-added service revenue in the first quarter of 2021 has the smallest year-on-year growth. However, Li Jinqing, an analyst at Bida consulting, told Beijing Business Daily that “with Tencent’s current volume, maintaining growth is good news. And judging from Tencent’s actions, they are already thinking of ways to reduce the growth rate of value-added service revenue. “. He refers to Tencent recently released more than 60 game products.

To B business expanded

In terms of the proportion of revenue, financial technology and enterprise services are Tencent’s second largest sector, with a revenue of 39 billion yuan in the first quarter of 2021, up 47% year on year. Due to the inclusion of enterprise services such as cloud computing, this business has always been regarded as the embodiment of Tencent to B performance. However, Tencent did not disclose the specific revenue data of Tencent’s cloud computing business in the first quarter of 2021.

Compared with the first quarter of 2020, the performance of financial technology and enterprise services business has changed significantly, and the proportion of revenue has increased from 25% to 29% in the first quarter of 2021. The year-on-year growth in revenue increased from 22% to 47% in the first quarter of 2021.

Tencent explained in its financial report that the growth of revenue from financial technology services reflected the impact of the first quarter of 2021 and the long-term trend of mobile payment use. The year-on-year growth rate of enterprise service revenue was higher than that in the previous quarter, which was mainly driven by the recovery of project deployment, the demand growth of enterprise software and online video customers, and the enterprise service revenue of merging e-Car in the fourth quarter of 2020.

However, Tencent did not disclose the specific contribution of the service part of e-Car enterprises, saying only: “the financial report shall prevail.”

In terms of the proportion of revenue cost, Tencent’s value-added services and financial technology and enterprise services also have different trends. In the first quarter of 2021, the revenue cost of value-added services was 32.5 billion yuan, mainly due to the increase of content cost of live broadcast services and video membership services, as well as the channel cost of mobile games. The revenue cost accounted for 45% of the revenue of value-added services, 3 percentage points higher than that of the same period last year.

The revenue cost of financial technology and enterprise services was 26.4 billion yuan, and the growth was mainly from the bank procedures of payment services and the deployment cost of cloud service projects. The revenue cost accounted for 68% of the revenue of this sector, which was 4 percentage points lower than that of the same period last year.

Invest in the future with income

In addition to the above plate, network advertising, the other two plate performance stable.

In the first quarter of 2021, Tencent’s online advertising revenue was 21.82 billion yuan, up 23% year-on-year, reflecting the growth in demand for e-commerce platforms, education and fast-moving consumer goods, as well as the advertising revenue contribution of the merger of yichuduo. Among them, social and other advertising revenue increased by 27% to 18.5 billion yuan, and media advertising revenue increased by 7% to 3.3 billion yuan. In the first quarter of 2021, Tencent’s other revenue reached 2.01 billion yuan, up 39% year on year.

In terms of revenue share, Tencent’s online advertising and other businesses were 16% and 1% respectively in the first quarter of 2021, which was the same as that in the first quarter of 2020.

In addition to business, Tencent also mentioned investment in its financial report. “We will take the initiative to increase investment and invest part of the profit increment in 2021 in new opportunities, which will cover enterprise services, games and short video content,” the financial report said.

Specifically, it will strengthen the efficiency of office SaaS (software as a service) products and security software, as well as the partnership and investment with SaaS suppliers and independent software suppliers to support customers’ digital needs; It is further investing in new game types that can serve more different target audiences, establishing its IP and cross media linkage, and investing in advanced technologies to provide next-generation game experience, such as cloud games; Collaboration between short and long video services is being strengthened. Through the merger of Tencent video and micro TV, we will further help the development of long video business by using our ability in short video. “

Beijing Business Daily reporter Wei Wei

[the above content is transferred from “Beijing Business Daily website”, which does not represent the view of this website. If you need to reprint it, please get permission from the website of Beijing business daily. If there is any infringement, please contact to delete it

 


发表评论

邮箱地址不会被公开。 必填项已用*标注