Tencent's three main businesses all saw revenue growth in the second quarter, with both domestic and international game markets growing by 9% year-on-year

On August 14, Tencent released its second-quarter financial report for 2024, ending June 30: revenue was 161.1 billion yuan, an 8% year-on-year increase. Net profit attributable to equity holders was 47.6 billion yuan, up 82% year-on-year. Under non-IFRS, net profit attributable to equity holders was 57.3 billion yuan, up 53% year-on-year.

Value-added service revenue was 78.8 billion yuan, up 6% year-on-year. Among them, domestic game revenue was 34.6 billion yuan, up 9% year-on-year, mainly driven by the revenue growth of Valorant and the successful launch of Dungeon & Fighter: Origins.

The financial report placed high hopes on Dungeon & Fighter: Origins, stating that the game has activated millions of IP fans and players have good retention, making it likely to become Tencent's next evergreen popular game. During the post-earnings conference call, Chief Strategy Officer James Mitchell frequently mentioned Dungeon & Fighter: Origins and expressed optimism about its sustainable development.

Meanwhile, games like Honor of Kings and Game for Peace continued to show signs of recovery, with their second-quarter revenue growing year-on-year. Pony Ma said in the financial report that due to increased user engagement in several classic games and the successful launch of several new games, both domestic and overseas game revenue increased in the second quarter.

WeChat Mini Program users' usage time increased by more than 20% year-on-year, and the transaction value completed through Mini Programs also achieved double-digit year-on-year growth. Among them, the monthly active users of Mini Games reached 500 million, with continuous increase in user usage time, and the total revenue of Mini Games increased by more than 30% year-on-year. So far, the Mini Game platform has served over 400,000 developers, with more than 240 games generating over 10 million in monthly revenue.

The digital entity business, represented by the FinTech and Business Services segment, achieved revenue of 50.4 billion yuan in the second quarter, up 4% year-on-year. This growth was primarily due to the expansion of self-developed businesses and the acceleration of SaaS and PaaS commercialization, which drove double-digit growth in enterprise services revenue and further improved gross margins.

Benefiting from factors such as video number advertising and AI efficiency improvements, online advertising revenue reached 29.9 billion yuan, up 19% year-on-year. In addition, the value-added services segment generated revenue of 78.8 billion yuan in the quarter, up 6% year-on-year.

Furthermore, the financial report showed that as of June 30, 2024, both video and music paying subscribers reached 117 million, representing year-on-year growth of 13% and 18%, respectively.

The combined monthly active accounts of WeChat and WeChat International reached 1.371 billion, up 3% year-on-year. QQ mobile monthly active accounts remained at 571 million, flat year-on-year. The number of registered accounts for paid value-added services increased to 263 million, up 12% year-on-year.