On the afternoon of May 18, Tencent holdings released its financial report for the first quarter of 2022 today According to the financial report, the company's revenue in the first quarter was 135.5 billion yuan, flat year-on-year; The net profit was 23.4 billion yuan, a year-on-year decrease of 51%. Under non international financial reporting standards, the net profit was 25.5 billion yuan, a year-on-year decrease of 23%
Summary of performance in the first quarter of 2022:
Total revenue: flat year-on-year. According to non international financial reporting standards, the profit attributable to Tencent equity holders decreased by 23% year-on-year
Total revenue was 135.5 billion yuan ($21.3 billion), flat from the first quarter of 2021 ("year-on-year").
▪ Excluding the impact of certain one-time and / or non cash items in accordance with non international financial reporting standards to reflect the performance of core business:
-The operating profit was RMB 36.5 billion (US $5.8 billion), a year-on-year decrease of 15%; The operating profit margin decreased to 27% from 32% in the same period last year.
-The profit during the period was 26.3 billion yuan (US $4.1 billion), a year-on-year decrease of 24%; The net profit margin decreased to 19% from 26% in the same period last year.
-During the period, the profit attributable to equity holders of the company was 25.5 billion yuan (US $4 billion), a year-on-year decrease of 23%.
-The basic earnings per share was 2.678 yuan. Diluted earnings per share was 2.620 yuan.
▪ In accordance with IFRS:
-The operating profit was 37.2 billion yuan (US $5.9 billion), a year-on-year decrease of 34%; The operating profit margin decreased to 27% from 42% in the same period last year.
-The profit during the period was RMB 23.7 billion (US $3.7 billion), a year-on-year decrease of 52%; The net profit margin decreased to 18% from 36% in the same period last year.
-During the period, the profit attributable to equity holders of the company was RMB 23.4 billion (US $3.7 billion), a year-on-year decrease of 51%.
-The basic earnings per share is RMB 2.455. Diluted earnings per share was 2.404 yuan.
▪ The total cash at the end of the period was RMB 304.1 billion (US $47.9 billion).
Other major financial information for the first quarter of 2022:
-The revenue from value-added services was 72.7 billion yuan, which remained stable compared with the same period last year. The game revenue in the local market was 33 billion yuan, a year-on-year decrease of 1%; The game revenue in the international market was 10.6 billion yuan, a year-on-year decrease of 20%;
-The business income of financial technology and enterprise services was 42.8 billion yuan, a year-on-year decrease of 11%;
-Social network revenue was 29.1 billion yuan, 28.8 billion yuan in the same period last year, with a flat year-on-year increase in holdings;
-EBITDA was 38.3 billion yuan, a year-on-year decrease of 22%. Adjusted EBITDA was 46.1 billion yuan, a year-on-year decrease of 13%.
Capital expenditure was 7 billion yuan, a year-on-year decrease of 10%.
Free cash flow was RMB 15.2 billion, a year-on-year decrease of 54%.
As of March 31, 2022, the net debt of the company was RMB 11 billion. The fair value of our equity in listed investment companies (excluding subsidiaries) is RMB 606 billion (US $95.5 billion). In the first quarter, the Company repurchased about 8.9 million shares at the Hong Kong stock exchange for a total consideration of about 3 billion yuan (US $474 million).
Operating data for the first quarter of 2022:
As of March 31, 2022, wechat and wechat had consolidated 1.29 billion monthly active accounts, with a year-on-year increase of 3.8%.
As of March 31, 2022, the number of monthly active accounts of QQ mobile terminal was 564 million, a year-on-year decrease of 7%.
In the first quarter, the number of paid members for value-added services was 239 million, a year-on-year increase of 6%
In the first quarter, the number of video paying members was 124 million.
Employee compensation:
As of March 31, 2022, Tencent had 116213 employees, a year-on-year increase of 30.2%. In the first quarter of 2022, the total remuneration was 29.229 billion yuan, a year-on-year increase of 43.2%. According to this calculation, the per capita monthly salary of Tencent employees is 84000.
Other aspects:
Tencent's general and administrative expenses in the first quarter increased by 41% year-on-year to RMB 26.7 billion, mainly due to the increase in share remuneration expenses, R & D expenses and employee costs (reflecting the increase in the number of employees caused by the company's continuous investment in key strategic areas), the increase in the expenses of our overseas subsidiaries and the expenses brought by the recently acquired subsidiaries.