Can Tencent Fintech's income be slightly increased by 1% in the second quarter?

On the afternoon of August 17th, reporter of Economic Observation Network, Tencent Holdings released the second quarter of the 2022 financial report. Among them, the revenue of fintech and enterprise service sector increased by 1%year -on -year to RMB 42.2 billion.

This is the minimum single -quarter growth rate of the business sector since 2019.

Tencent said that the year -on -year growth rate was slower than the previous quarter due to the short -term suppression of commercial payment activities in April and May. The amount of commercial payment slowed down from April 2022 to a low number of digits year -on -year.

Wang Pengbo, a senior analyst at the Broadcom consulting financial industry, told reporters that Tencent's fintech growth is different from our previous expectations, but it is in line with real logic. The growth rate of WeChat payment now mainly depends on the effect of long tails, including the growth of users, the use of users in consumer scenarios, and the increase in frequency of use. These depend on WeChat's strong social attributes. From April to May of this year, the country, especially first-tier cities, was affected by the epidemic, which will directly affect the growth of transactions in payment. For WeChat payment, which is profitable with a high -frequency transaction rate, the transaction scale and income will be affected.

The previous financial report data shows that since the second quarter of 2019, fintech and corporate services have gradually become the second largest pillar of Tencent's revenue. By the end of 2019, the revenue of this sector was even close to Tencent's online game business.

According to historical financial report data, in the first quarter of 2019, the sector increased by 44%year -on -year to 21.789 billion yuan; in the second quarter, 37%was increased by 37%to 22.888 billion yuan; the third quarter was 36%year -on -year to 26.758 billion yuan, and revenue in the fourth quarter reached 29.92 billion yuan. Increase 12%. In 2020, the growth of Tencent Fintech sector has slowed down, and the revenue of fintech and corporate service business increased by 22%year -on -quarter to 26.475 billion yuan in the first quarter of 2020; Increased by 24%to 33.255 billion yuan; revenue in the fourth quarter increased by 29%year -on -year to 38.5 billion yuan. However, in 2021, Tencent Fintech and corporate service business increased by 40%year -on -year to 41.9 billion yuan.

Tencent's financial report stated that the year -on -year growth rate of commercial payment was recovered to more than ten % in June 2022.

Wang Pengbo believes that the social attributes of WeChat are still strong, and the wealth effect in June is still continuing, and it has returned to the growth of double digits. Such a large base can still have such a high growth rate, indicating that the development space of mobile payment is still very large. It is expected that in the future, mobile payment will still maintain a strong scenario penetration ability, and the coverage of the population is expanding. "It can be observed that the elderly who use mobile payments in daily consumption are increasing, and the frequency of mobile payment for the elderly is also increasing, which is enough to support more than ten percent of such payment giants."

Earlier, Tencent stated in its financial report that its income growth of financial technology service revenue was mainly reflected in digital payment transactions, and continuously disclosed the average daily transaction pens and monthly active accounts related to its commercial payment business in the 2018 and 2019 annual reports. , Tencent's Wealth Management Platform Wealth Management Asset ownership growth rate and other data, and since the 2020 annual report, no specific data disclosure was found.

Ma Huateng, chairman and CEO of Tencent's board of directors, said on August 17, "About half of our income comes from fintech and corporate services and network advertisements." The financial report shows that Tencent Holdings revenue in the second quarter of 134 billion yuan, a year -on -year decrease of 3%; net profit was 18.6 billion yuan, a year -on -year decrease of 56%. Under non -international financial reporting standards, net profit was 28.1 billion yuan, a year -on -year decrease of 17%.

Wang Pengbo predicts that if the epidemic is less affected by the epidemic in the third and fourth quarters, the income of WeChat payment business will return to normal growth. The payment interconnection has a positive impact on WeChat payment, breaking the barriers between scenes. WeChat Pay can quickly occupy more online and offline scenarios through its powerful social attributes and user stickiness.

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