Tencent Holdings (00700.HK) released its Q2 financial report on August 16th, revealing that the company achieved a revenue of CNY 149.208 billion, representing an 11% year-on-year growth. Its non-IFRS net profit reached CNY 37.548 billion（USD5.8 billion）, with a 33% year-on-year increase.
Shenzhen, China - Tencent（Chinese：腾讯）, founded in 1998, has maintained its commitment to using technology for the betterment of society. As a global leader in communication and social services, Tencent connects over 1 billion people worldwide, facilitating seamless interactions with friends and family, convenient travel, payment, and entertainment experiences.
According to Tencent's latest report, the highlights of this quarter include strong performance in advertising, video platforms, and overseas gaming. Advertising revenue reached CNY 25 billion, a remarkable 34% YoY increase, benefiting from improved platform capabilities and the commercial ecosystem of WeChat. The digital economy also showed steady growth, generating revenue of CNY 48.64 billion（USD 755 million）, a 15% YoY increase. Overseas gaming continued to contribute significantly, with revenue reaching CNY 12.7 billion（USD 197 million), a 19% YoY increase, accounting for nearly 30% of total gaming revenue.
The rapid development and widespread application of global internet technologies have led to a continuous increase in internet penetration rates. According to data released by the World Bank and IWS, the global internet industry's penetration rate has steadily risen from 2009 to 2022, reaching 67.9% as of June 30, 2022. Tencent's Chairman and CEO, Ma Huateng, stated that the company will maintain robust revenue growth, prioritize higher-profit margin revenue sources, and combine stringent cost discipline to achieve profit growth exceeding revenue growth.
Internally, Tencent has successfully applied its industry-leading capabilities in large-scale models to various SaaS products such as Tencent Enterprise Meeting, Tencent Cloud AI Code Assistant, and Tencent Enterprise Point. Externally, Tencent's large-scale models have been applied to more than 10 industries, including finance, tourism, media, and government affairs, providing over 50 industry-specific solutions.
With overseas gaming contributing nearly 30% of total gaming revenue, Tencent is strengthening its "second growth curve." While exploring incremental opportunities in its core businesses, Tencent is also intensifying its focus on the international market, where its gaming revenue continues to grow. Since Q3 2019, Tencent has consistently reported progress in international gaming. In 2022, Q1 to Q4, overseas gaming accounted for 24.3%, 25.2%, 27.3%, and 33.3% of total gaming revenue, demonstrating a continuous upward trend.
Tencent is among the top-tier internet technology companies in China, alongside Alibaba, Meituan, JD.com, and Pinduoduo. In the United States, leading internet technology companies include Microsoft, Google, and Apple.
In summary, Tencent has achieved consecutive revenue growth for two quarters this year. Since the second half of last year, its net profit growth has consistently outpaced revenue growth, showcasing the success of its high-quality development strategy.