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Text | Neighbor Chapter
Source: Neighbor Chapter
Yesterday, Tencent announced its results for the first quarter of 2022. Overall, this financial report gave us a deep appreciation for the chill of the Internet.
The data shows that this quarter Tencent achieved revenue of 135.47 billion yuan, and revenue remained flat, but far less than the market expected 140.971 billion yuan; net profit was 23.413 billion yuan, down 51% year-on-year (according to the International GAAP), the same less than market expectations.
Specific to each business sector, its performance can also be said to be mixed, but more seems to be worry.
For example, in the gaming business, although the international market grew by 4%, the home market in the base camp actually fell by 1%.
And the problems of anti-addiction and game version numbers that have been lingering in the game business for a long time are still the curse on the head of this business.
Of course, what needs to be seen is: Tencent has stated that the impact of the anti-addiction system for minors on the revenue of the game business will be fully digested in the second half of this year, and the current strict release of game version numbers has loosened. Although Tencent is not in the first list, this trend is good news for Tencent.
But in the game business, for Tencent, the biggest challenge may be, where is the next “Honor of Kings”? Tencent also needs to continue to prove that it has the sustainable ability to create high-quality games for all.
Compared with the game business, the performance of the online advertising business is even more worrying.
The data shows that the revenue of this business fell by 18% year-on-year in this quarter, of which social and other advertising revenue fell by 15% to RMB 15.7 billion; media advertising revenue fell by 30% to RMB 2.3 billion.
The decline in the advertising business also further shows that the overall commercial marketing investment in the current environment is sluggish, and when this slump can end, it needs to be marked with a question mark.
And under the reality of the overall sluggish business environment, Tencent is also facing more external challenges.
For example, on the Android side, App Store, which “has made substantial contributions to the growth of Tencent’s social and effective advertising”, is currently facing the challenge of the official app store of smartphone manufacturers on the Android system; In the new stage of information protection, data security regulations, and strong restrictions on application permissions, Tencent’s advertising business will of course face new challenges.
The only bright spot in this quarter’s financial report may be that Tencent’s financial technology and enterprise services achieved a year-on-year growth of 10%, indicating Tencent’s good competitiveness in the digital economy era (industrial Internet field).
But on the whole, the 10% growth rate of this business in this quarter is also relatively general.
You must know that this business has become Tencent’s new growth pole since it was independent from Tencent.
In the past few years, the overall revenue growth rate of Tencent’s business has been relatively high.
For example, in the first quarter of 2021, the year-on-year growth rate of this sector was 47%, and in the whole year of 2021, the year-on-year growth rate of this sector was 34%. Even in the first quarter of 2020, the year-on-year growth rate of this sector reached 22%.
However, in the first quarter of this year, the growth rate of this business segment was only 10%. Of course, this is due to the increase in volume, but such growth performance may also reflect that the growth rate of this business is also facing challenges, especially in the Under the current financial supervision situation, this also makes this business require Tencent to spend more attention.
Although everything in the past is a prologue, as a giant Tencent’s poor-than-expected financial report performance in the first quarter, it still gives us a deeper understanding of the chill that the Internet is facing today.
The bigger question is: Is this the hardest moment, or is it just the beginning?
Of course, what needs to be seen is that Tencent’s basic social moat is still wide, and WeChat’s dominance over the social market is further strengthening. Tencent’s R&D investment of 15.383 billion yuan this quarter also shows Tencent’s strong focus on technology R&D innovation. determination.
Although these R&D investments cannot be immediately effective, they are laying the foundation for future development, which may also be a request to Ma Huateng: “Tencent should do these difficult and correct things, promote social co-creation with long-term determination, and create a promising future. Sustaining Social Value”, a practical response.
Write at the end:
Tencent’s financial report shows us that the Internet is entering a difficult time now, and even a giant like Tencent is difficult to achieve unique scenery. But frankly speaking, what really worries me about this financial report is not how a giant with deep strength like Tencent will perform next, but where those Internet companies that are much smaller than Tencent will go next ?
(Disclaimer: This article only represents the author’s point of view and does not represent the position of Sina.com.)
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