Tencent announced its third-quarter earnings report. What are the highlights?

Tencent's third-quarter financial report, revenue and profit exceeded expectations, especially the game business revenue hit a record high, reaching 41400 million yuan. Tencent's latest financial report data shows that tencent games's business has achieved 45% growth relying on the operation of the glory of the king and Peace Elite, which should be the highest growth rate in recent years, and its revenue has directly exceeded 40 billion, which has established tencent games's dominance. With the increase of WeChat advertising space, the advertising business has also accelerated, achieving a quarter-on-quarter growth rate of 15%, exceeding the expectations of investment banks. The only drawback is that the performance of enterprises in cloud computing is not as good as expected, which further widens the gap with Alibaba Cloud.

Tencent's advertising business has also made great progress. In the third quarter, online advertising revenue reached 21300 million, a year-on-year increase of 16%. Considering that the advertising business is oriented to third-party enterprises, it can still create growth under the influence of the epidemic, which is also a good result. Tencent said that the growth of advertising revenue comes from the continuous improvement of advertising algorithms and the increasing demand for advertising in the online real estate and automobile industries, thus achieving contrarian growth.

There is another bright spot in this quarter's earnings report. Together with the business of our company, the total assets of Tencent's foreign investment reached 730 billion yuan, an increase of 400 billion yuan over the end of last year. The main increase came from the sharp rise in the share prices of Pinduoduo and Meituan. Although these assets are not working capital, the investment and research strength of Tencent Investment Department has been proved.

In fact, some analysts pointed out that Tencent's own business attracted too many people's attention, but its investment department was often ignored by the public. In fact, Tencent holds a large share of all enterprises in the WeChat ecosystem. In the future, with the growth of enterprises such as Meituan and Pinduoduo, the profits of these books are also very considerable.