腾讯-2020年第三季度腾讯财报PPT版（英文）-2020.11-22页_1mb

Tencent 2020 Third Quarter Results Summary

Core Content Overview

Tencent Holdings Limited released its third-quarter 2020 results, highlighting financial performance, business developments, and strategic initiatives across various segments. The presentation includes key financial metrics, segment updates, and non-IFRS adjustments. The reporting currency is Renminbi (RMB), with US dollar figures based on an exchange rate of US$1 to RMB6.8101.

Main Financial Highlights

• Total Revenue: RMB125.4 billion (+29.0% YoY, +9.2% QoQ)
• Value Added Services (VAS): RMB69.8 billion (+37.9% YoY, +7.4% QoQ)
• Social Networks: RMB28.4 billion (+28.9% YoY, +6.2% QoQ)
• Online Games: RMB41.4 billion (+44.8% YoY, +8.2% QoQ)
• Online Advertising: RMB21.3 billion (+16.3% YoY, +15.1% QoY)
• Media: RMB3.6 billion (-1.4% YoY, +9.4% QoQ)
• FinTech and Business Services: RMB33.3 billion (+24.3% YoY, +11.4% QoQ)
• Net Profit Attributable to Equity Holders (Non-IFRS): RMB32.3 billion (+32.3% YoY, +7.1% QoQ)
• Operating Profit (Non-IFRS): RMB38.1 billion (+33.5% YoY, +1.3% QoQ)
• Operating Margin (Non-IFRS): 30.4% (+1.0ppt YoY, -2.4ppt QoQ)
• Net Profit Attributable to Equity Holders (IFRS): RMB38.5 billion (+89% YoY, +16% QoQ)
• Net Profit (IFRS): RMB38.9 billion (+85% YoY, +20% QoQ)

Key Business Updates

Social Networks

• Revenue Growth: Increased by 29% YoY and 6% QoQ, driven by in-game items sales and live streaming services.
• VAS Subscriptions: Total VAS subscriptions reached 213 million, up 25% YoY.
  • Video subscriptions: 120 million (+20% YoY)
  • Music subscriptions: 52 million (+46% YoY)
• Weixin Pay Interface: Services regrouped into four verticals (Financial Services, Daily Services, Travel & Transportation, Shopping & Entertainment), with the Mobility tab launched in ten provinces and municipalities.
• Content Discovery: Implemented Press-to-Search in chat boxes and hashtags in Moments posts to enhance user engagement.

Online Games

• Revenue Growth: RMB41.4 billion (+44.8% YoY, +8.2% QoQ)
  • Smart Phone Games: RMB39.2 billion (+61% YoY), driven by existing titles and deferred revenue from the stay-at-home period.
  • PC Client Games: RMB11.6 billion (stable YoY), with CrossFire and Valorant contributing to growth.
• New Releases:
  • Moonlight Blade Mobile: Top MMORPG launch in China, ranked among top 3 in iOS China grossing chart.
  • LoL Wild Rift: Open-beta testing on mobile in Asia, top-ranked by downloads.

Online Advertising

• Ad Spend Growth: Sustained growth in education, internet services, and e-commerce platforms; auto and real estate also showed improvement.
• Weixin Ad Revenue: Increased YoY due to higher impressions and eCPM.
• Mobile Ad Network: Rapid growth YoY as advertisers responded positively to video formats.
• Media Ad Revenue: Decreased by -1% YoY, but moderated due to sponsorship ads and higher eCPM from splash screen ads.

FinTech and Business Services

• FinTech Revenue: RMB33.3 billion (+24.3% YoY), driven by commercial payment and wealth management businesses.
  • Payment Volume: Increased by over 30% YoY.
  • Wealth Management Customers: Over 50% YoY growth.
• Business Services:
  • PaaS Revenue: Rapid growth YoY, especially in security PaaS.
  • SaaS Upgrades:
    • WeCom: DAU more than doubled YoY.
    • Tencent Meeting: Registered users surpassed 100 million; enterprise version released.
    • Tencent Docs: Integrated into more Tencent products.

Non-IFRS Adjustments

• Operating Profit (Non-IFRS): RMB38.1 billion (+33.5% YoY, +1.3% QoQ)
• Net Profit Attributable to Equity Holders (Non-IFRS): RMB32.3 billion (+32.3% YoY, +7.1% QoQ)
• Operating Margin (Non-IFRS): 30.4% (+1.0ppt YoY, -2.4ppt QoQ)
• Net Margin (Non-IFRS): 26.6% (+0.8ppt YoY, -0.6ppt QoQ)

Operating Expenses

• S&M (Sales and Marketing): Increased YoY and QoQ, reflecting higher marketing investments.
• R&D: Continued investment in technology and product development.
• G&A (excluding R&D): Managed efficiently, with growth in certain areas.

Capital Expenditure and Cash Flow

• Operating CAPEX: RMB7.78 billion (+34% YoY, -6% QoQ)
• Non-operating CAPEX: RMB901 million (+12% YoY, -24% QoQ)
• Total CAPEX: RMB8.68 billion (+31% YoY, -8% QoQ)
• Operating Cash Flow: RMB46.5 billion (+5% YoY, +6% QoQ)
• Free Cash Flow: RMB28.1 billion (stable YoY, -1% QoQ)
• Total Cash: RMB265.9 billion (+33% YoY, -5% QoQ)
• Total Debt: RMB259.5 billion (+25% YoY, -5% QoQ)
• Net Cash/Net Debt: RMB6.4 billion (positive, indicating strong liquidity)

Fair Value of Shareholdings

• The fair value of Tencent's shareholdings in listed investee companies (excluding subsidiaries) was approximately RMB891 billion (USD131 billion) as of September 30, 2020, compared to RMB726 billion (USD103 billion) as of June 30, 2020.

Conclusion

Tencent demonstrated strong financial performance in Q3 2020, with significant revenue growth across multiple segments. The company's strategic focus on enhancing user engagement through new features and content, along with robust growth in FinTech and Business Services, contributed to improved profitability. Despite challenges, Tencent maintained a healthy cash position and continued to invest in technology and infrastructure to support long-term growth.