Tencent, a key player in the tech industry, is gearing up to unveil its 4Q23 earnings, offering investors a glimpse into its financial performance and strategic trajectory. Anticipating this release, here's a breakdown of what to expect for 1Q24E and insights from March 2024.
Key Takeaways for 1Q24E:
Tencent's Video Account business emerges as a promising growth driver, with advertising monetization and livestreaming e-commerce fueling its momentum. In 1Q24E, the Video Account index surged by 108.8% year-on-year (Y/Y), showcasing robust growth.
Game Business Analysis:
While established games like Honor of Kings and Peacekeeper Elite continue to dominate, expectations for upcoming pipeline games remain modest, except for DnF Mobile. Mobile games witnessed a 21.4% Y/Y surge in popularity, driven by titles like Dream Stars.
Revenue Forecast for 1Q24E:
Projections suggest Tencent's revenue to reach around RMB165,157M, outperforming consensus estimates. The uptick is fueled by a 19.7% increase in online advertising and an 11.3% rise in the Fintech and Business Services segment.
Insights on Mobile and PC Games:
Mobile game rankings witnessed a positive trajectory, with titles like Honor of Kings and Peacekeeper Elite maintaining top positions. PC game metrics indicate a slight decline in average concurrent users (ACUs) but a notable increase in the number of servers, driven by CrossFire.
