htmlOn November 10, Tencent released its third quarter financial report for 2021. The data of showed that Tencent's revenue this quarter was 142.368 billion yuan, a year-on-year increase of 13%, lower than the market estimate of 145.41 billion yuan. Net profit for the quarter was 39.5 billion yuan, a year-on-year increase of 3%, higher than the market estimate of 32.6 billion yuan.
Tencent's total revenue in the first three quarters of this year reached 415.9 billion yuan, a year-on-year increase of 19%; the total net profit reached 129.864 billion yuan, a year-on-year increase of 29%; the adjusted net profit was 98.908 billion yuan, a year-on-year increase of 10%. In addition, the monthly active accounts of WeChat reached 1.26 billion, a year-on-year increase of 4.1%; while the monthly active users of QQ were 574 million, a year-on-year decrease of 7.1%.
Tencent’s online advertising business revenue in the third quarter was 22.5 billion yuan, a year-on-year increase of 5%. Revenue growth has been driven by the increase in advertising of WeChat mini programs and WeChat public accounts, with social and other advertising revenue reaching 19 billion yuan, a year-on-year increase of 7%.
Value-added service business revenue was 75.2 billion yuan, an increase of 8% year-on-year. Among them, driven by games such as "Glory of Kings" and "Call of Duty Mobile", the local market game revenue was 33.6 billion yuan and the international market game revenue was 11.3 billion yuan. The social network revenue is 30.3 billion yuan, which is mainly composed of paid video/music members, live broadcasts and game prop sales.
From the financial report, it can be seen that games, videos and music are still Tencent’s largest source of revenue, and this part of the business has brought nearly half of Tencent’s revenue . Even though Tencent has lifted the exclusive music copyright in accordance with regulations, the number of paid music members has still increased significantly, reaching 71 million. At the same time, the emergence of a series of film and television content such as "Anti-Black Storm" has driven the increase of paid video members by 8% year-on-year to 129 million.
I thought the launch of "League of Legends Mobile Game" would have a certain impact on "Honor of Kings", but it coincided with the sixth anniversary celebration of the game. Stimulated by a series of Tencent's activities, the popularity of "Honor of Kings" has not been suppressed. As more new heroes and new skins are launched one after another, it is speculated that it should bring considerable income to Tencent.
Another thing worth paying attention to is the monthly active users of WeChat and QQ. Both of them still maintain the previous trend, with WeChat growing and QQ declining. Nowadays, QQ has less than 600 million monthly active users, less than half of WeChat. Although QQ carries the memories of many people, in the context of today's era, QQ is indeed not as practical as WeChat. I hope Tencent can make some changes in its functions in the future.
Of course, the growth of WeChat's monthly active users does not mean that it is better to use, and many functions are still criticized by users. However, WeChat is already closely related to everyone's life. I also hope that the WeChat team can optimize certain functions and improve the user experience.
