Nomura: Expects Tencent Holdings to have strong earnings in the first quarter, with online gaming revenue possibly increasing by 15% year-on-year
Nomura released a research report stating that Tencent Holdings is expected to have strong earnings in the first quarter of this year, with revenue flat compared to last year. It is anticipated that Tencent's total revenue in the first quarter will increase by 10% year-on-year to RMB 176 billion, and adjusted operating profit will rise by 19% year-on-year to RMB 70 billion, exceeding market expectations by 4%. At the same time, it is expected that Tencent's operating profit margin will benefit from the continued expansion of gross profit margin, potentially increasing by 2.8 percentage points to 39.6% in the first quarter, with adjusted earnings per share also expected to grow by 29% year-on-year. The report indicated that due to the strong performance of Tencent's traditional games such as "Honor of Kings," "Peacekeeper Elite," and "Brawl Stars," along with the recent contribution from the mobile version of "Dungeon & Fighter," Tencent's online gaming revenue in the first quarter is expected to rise by 15% year-on-year. Additionally, Nomura predicts that Tencent's online advertising revenue will grow by 19% year-on-year, mainly driven by video account (VA) advertising, which may account for over 20% of the advertising segment's revenue
According to the Zhitong Finance APP, Nomura has released a research report stating that Tencent Holdings (00700) is expected to have strong earnings in the first quarter of this year, with revenue remaining flat compared to last year. It is anticipated that Tencent's total revenue in the first quarter will increase by 10% year-on-year to RMB 176 billion, and adjusted operating profit will rise by 19% year-on-year to RMB 70 billion, exceeding market expectations by 4%. At the same time, it is expected that Tencent's operating profit margin will benefit from the continued expansion of gross margin, potentially increasing by 2.8 percentage points to 39.6% in the first quarter, with adjusted earnings per share also expected to grow by 29% year-on-year.
The report indicates that due to the strong performance of Tencent's traditional games such as "Honor of Kings," "Peacekeeper Elite," and "Brawl Stars," along with the recent contribution from the mobile version of "Dungeon & Fighter," Tencent's online gaming revenue in the first quarter is expected to rise by 15% year-on-year. Additionally, Nomura predicts that Tencent's online advertising revenue will grow by 19% year-on-year, mainly driven by video account (VA) advertising, with its revenue share potentially rising to over 20% of the advertising segment