August 17th, Tencent Q2 $TENCENT (00700.HK)$The financial report arrived as promised. At the current node where challenges and development coexist, where Tencent will go is undoubtedly a topic of concern to many investors.
Today, through this financial report, let's take a look at Tencent's current development, which are reasonable and which are unexpected.
01. Revenue fell but net profit recovered month-on-month
According to the financial report, Q2 Tencent achieved operating income of 134.034 billion yuan and non-international accounting standards (Non-IFRS) net profit of 28.139 billion yuan, down 17% from the same period last year and up 10% from the previous month.
Conclusion: under the general trend of weakness in the industry as a whole, Tencent is hardly an exception. Revenue is now negative for the first time, and net profit has declined for four consecutive quarters compared with the same period last year. However, this is also expected by the market, and BABA and Huawei, which disclosed the latest results, are also facing the dilemma of stagnant growth.
But the bright side is that Tencent's net profit has recovered for two consecutive quarters, which is a good positive signal, which means that Tencent's measures to reduce costs and increase efficiency are beginning to bear fruit, and whether the shift to fine operation can bring continuous profit improvement for Tencent is worth paying attention to.
02. The basic disk of the game is solid.
Tencent's game revenue in its home market fell 1 per cent to 31.8 billion yuan, while that in the international market fell 1 per cent to 10.7 billion yuan.
Conclusion: although the growth of the game seems to be weak from the perspective of year-on-year changes, it is actually relatively rare to maintain this figure. After all.