[TechWeb] May 15 news, Tencent Holdings today released the unaudited first quarter earnings report as of March 31, 2019, the financial report shows that Tencent's first quarter revenue of 85.465 billion yuan, an increase of 16%; operating profit 36.742 billion yuan, a year-on-year increase of 20%; profit for the period of 27.856 billion yuan, an increase of 16%.
The financial report shows that Tencent's first quarter revenue growth was mainly driven by commercial payment services and other technology financial services, social advertising and digital content services.
Communication and social
As of the first quarter, the number of monthly active accounts of WeChat and WeChat reached 1.112 billion, a year-on-year increase of 6.9%. The number of monthly active accounts of QQ's smart terminals increased slightly to over 700 million.
The revenue from the game business rose 10 percent from the same period last year, while the reported revenue fell 1 percent from the same period last year to 28.5 billion yuan, including the difference between the revenue deferred policy and the reported revenue from the sale of game props. Thanks to the peak season and the upgrading of the content of major personal computers and smartphone games, both running revenue and reporting revenue recorded growth from a month earlier.
Smartphone gaming revenue, including smartphone gaming revenue, which belongs to our social networking business, fell 2 per cent from a year earlier to 21.2 billion yuan because of lower releases of new games but due to seasonal activities. The above income rose 11% from a month earlier.
PC client game revenue was 13.8 billion yuan, down 2 percent from a year earlier, up 24 percent from a month earlier. In the first quarter, core paying users of major PC games remained healthy.
The number of subscription accounts for value-added service is increased by 13%to 165.5 millon, mainly driven by the subscription number of video and music services.
The number of Tencent video ordering accounts increased by 43 per cent year on year to 89 million, mainly due to the popularity of homemade IP content, such as "angry clear Xiangxi" (that is, the third quarter of "Ghost blowing Lamp"), "Heaven Sword and Dragon Sabre" (based on Jin Yong's famous martial arts novels). The second season of Duluo mainland. The number of Tencent video subscription accounts is roughly the same from the previous month, and it could have contributed more to the increase in the number of subscription accounts if it were not for some episodes to be delayed.
Tencent video daily broadcasts grew rapidly year-on-year due to the popularity of short videos distributed by Tencent video applications.
Revenue from online advertising business increased by 25% year-on-year to RMB 13.377 billion. Due to the challenging macro environment and the large base impact, the growth rate of this business has slowed down compared with previous years. Affected by the off-season in the first quarter, online advertising revenue fell 21% from the previous quarter.
Social and other advertising revenue increased by 34% year-on-year to RMB 9.9 billion, benefiting from the increase in the fill rate and advertising volume of each advertising inventory. The bidding volume in the first quarter was less than the e-commerce season in the fourth quarter of last year, which caused the cost per click to decrease.
Media advertising revenue rose 5 per cent from a year earlier to 3.5 billion yuan, mainly due to the increase in information flow advertising. It mainly reflects the increase of advertising contribution in Tencent news service.
Financial technology and corporate services
Revenue from financial technology and corporate services increased 44% year-on-year to RMB 21.789 billion, benefiting mainly from commercial payments and cloud service revenue growth.
Revenue from the cloud business maintained rapid year-on-year growth, mainly due to the expansion of IaaS,PaaS and SaaS product categories and product growth, resulting in an increase in the paid customer base.
As of March 31, 2019, Tencent's free cash flow was 23.933 billion yuan, up 72 percent from a year earlier, and net debt was 9.595 billion yuan. (Zhou Xiaobai)