Tencent's Q4 revenue up 26% year-on-year to RMB 133.67 billion, in line with expectations

March 24, 2021 CV TECH INC

Chinese tech giant Tencent’s fourth-quarter revenue rose 26 percent year-on-year to RMB 133.67 billion ($20.5 billion), in line with market expectations, according to the company’s earnings report released on Wednesday.


Tencent’s gross profit rose 28 percent year-on-year to RMB 58.88 billion in the fourth quarter, while non-IFRS net profit was RMB 33.21 billion, up 30 percent year-on-year.


Tencent’s value-added services business grew 28% year-on-year to RMB 67 billion in the fourth quarter, accounting for 50% of revenue. Social networking revenue increased 27% to RMB 27.9 billion.


Tencent’s online gaming revenue grew 29% to RMB 39.1 billion, below analyst estimates of RMB 39.74 billion, with overseas gaming revenue up 43% year-on-year to RMB 9.8 billion.


Tencent’s online advertising business grew 22% to RMB 24.7 billion in the fourth quarter, beating market estimates of RMB 23.93 billion.


Social and other advertising revenue grew 25% to RMB 20.4 billion, while media advertising revenue increased 8% to RMB 4.3 billion.


In the fourth quarter, Tencent’s financial technology and enterprise services business grew 29% year-on-year to RMB 38.5 billion, while another net revenue was RMB 32.9 billion.


In the fourth quarter, Tencent’s capital expenditures were RMB 9.66 billion, down 43% year-on-year. Free cash flow was RMB 27.66 billion, a decrease of 11% year-on-year.


At the end of the fourth quarter, the fair value of Tencent’s interests in listed investment companies totaled RMB 120.49 billion.


Tencent’s full-year revenue increased 28% year-on-year to RMB 482.06 billion and gross profit increased 32% to RMB 221.53 billion.


The company’s full-year operating profit grew 55% to RMB 184.24 billion and non-GAAP net profit was RMB 122.74 billion, up 30% year-on-year.


More than 400 million people used WeChat Mini Programs every day last year, and GMV grew more than 100 percent year-on-year, Tencent said.


Tencent said its VooV Meeting became the largest online meeting app in China, and WeChat Enterprise served more than 5.5 million enterprise customers.


Tencent’s R&D staff now accounts for 68% of its workforce



Tencent's Q4 revenue up 26% year-on-year to RMB 133.67 billion, in line with expectations-CnTechPost


Tencent's Q4 revenue up 26% year-on-year to RMB 133.67 billion, in line with expectations-CnTechPost