The earnings call showcased positive financial growth across various segments, particularly in gaming, cloud services, and marketing services. However, challenges were noted in payment revenue and average order value. Overall, the highlights outweigh the lowlights, indicating a strong performance and positive outlook.

Company Guidance

During Tencent Holdings Limited's Q3 2024 earnings call, the company provided guidance that highlighted several key metrics and strategic initiatives. Total revenue for the quarter was reported at RMB 167.2 billion, an 8% increase year-on-year and a 4% sequential increase. Gross profit rose to RMB 88.8 billion, up 16% year-on-year. The company emphasized its focus on evergreen games, with total revenue from domestic games growing 14% year-on-year to RMB 37 billion. International games revenue increased 9% year-on-year to RMB 15 billion, with notable contributions from games like PUBG Mobile and Brawl Stars. In the social network segment, WeChat's monthly active users (MAU) grew to 1.38 billion, while QQ's mobile MAU achieved year-on-year growth to 562 million. The company also reported a 19% year-on-year increase in non-IFRS operating profit to RMB 61.3 billion. Tencent remains optimistic about the long-term potential of its e-commerce ecosystem within Weixin, noting that Mini Programs facilitated over RMB 2 trillion in transaction GMV. Additionally, the company highlighted its ongoing investment in AI technologies and outlined its strategy to leverage AI across various products and operations to enhance user experience and operational efficiency.

Strong Financial Performance

Total revenue was RMB 167 million, up 8% year-on-year and 4% quarter-on-quarter. Gross profit was RMB 89 billion, up 16% year-on-year and 3% quarter-on-quarter. Non-IFRS operating profit was RMB 61 billion, up 19% year-on-year and 5% quarter-on-quarter.

Gaming Business Growth

Domestic games revenues grew 14% year-on-year to RMB 37 billion. International games revenue increased by 9% year-on-year or 11% in constant currency terms to RMB 15 billion.

Increase in Subscriptions

Music subscription revenue increased 20% year-on-year, with subscriptions growing 16% to 119 million. Long-form video subscription revenue increased 4% year-on-year, with video subscriptions growing 6% to 116 million.

Marketing Services Revenue Growth

Marketing Services revenue grew 17% year-on-year, with strong contributions from games and e-commerce categories.

Improved Gross Margins

Overall gross margin was 53%, up 4 percentage points year-on-year.

Growth in Cloud Services

International cloud revenue increased significantly year-on-year, leveraging domain expertise in areas such as games and live streaming and competitive pricing.

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Tencent Holdings (TCEHY) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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TCEHY Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Aug 15, 2018	2018 (Q2)	- / 0.26	0.277	-5.05% (-0.01)	―	―
Nov 14, 2018	2018 (Q3)	- / 0.34	0.276	23.55% (+0.07)	―	―
Mar 21, 2019	2018 (Q4)	- / 0.20	0.317	-35.33% (-0.11)	―	―
May 15, 2019	2019 (Q1)	- / 0.38	0.352	8.24% (+0.03)	―	―
Aug 14, 2019	2019 (Q2)	- / 0.33	0.249	32.53% (+0.08)	―	―
Nov 13, 2019	2019 (Q3)	- / 0.28	0.324	-13.89% (-0.04)	―	―
Mar 18, 2020	2019 (Q4)	- / 0.29	0.205	42.44% (+0.09)	―	―
May 13, 2020	2020 (Q1)	- / 0.39	0.381	2.36% (<+0.01)	―	―
Aug 12, 2020	2020 (Q2)	- / 0.46	0.33	38.18% (+0.13)	―	―
Nov 12, 2020	2020 (Q3)	- / 0.55	0.279	97.85% (+0.27)	―	―

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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TCEHY Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Nov 13, 2024	$51.91	$51.90	-0.02%
Aug 14, 2024	$48.61	$47.97	-1.32%
May 14, 2024	$48.04	$48.50	+0.96%
Mar 20, 2024	$36.16	$36.63	+1.30%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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