Tencent FY2024 Q1 Earnings Release

May 14, 2024
2024 First Quarter
Results Presentation

This presentation may contain forward -looking statements relating to the forecasts, targets, outlook, estimates of financial performance, opportunities,
challenges, business developments, business plans and growth strategies of Tencent Holdings Limited (the “Company ”or “Tencent ”)and its group
companies .These forward -looking statements are based on information currently available to Tencent and are stated here on the basis of the outlook at
the time that this presentation was produced .The Company undertakes no obligation to publicly update any forward -looking statement, whether written
or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise .The forward -looking statements
are based on certain expectations, assumptions and premises, some of which are subjective or beyond our control .The forward -looking statements may
prove to be incorrect and may not be realised in the future . Underlying the forward -looking statements are a large number of risks and
uncertainties .Therefore you should not rely on any of these forward -looking statements .Please see our various other public disclosure documents for a
detailed discussion of those risks and uncertainties .
This presentation also contains some unaudited non -IFRS financial measures which should be considered in addition to, but not as a substitute for,
measures of the Company’s financial performance prepared in accordance with IFRS .In addition, these non -IFRS financial measures may be defined
differently from similar terms used by other companies .The Company’s management believes that the non -IFRS financial measures provide investors
with useful supplementary information to assess the performance of the Company ’s core operations by excluding certain non -cash items and certain
impact of acquisitions .For further explanation of our non -IFRS measures and reconciliations between our IFRS and non -IFRS results, please refer to our
earnings announcement .
In addition, information relating to other companies and the market in general presented in these materials has been obtained from publicly available
information and other sources .The accuracy and appropriateness of that information has not been verified by Tencent and cannot be guaranteed .All
materials contained within this presentation are protected by copyright law and may not be reproduced, distributed, transmitted, displayed, published or
broadcast without the prior, express written consent of Tencent .
The reporting currency of the company is Renminbi .For the purpose of this presentation, all figures quoted in US dollars are based on the exchange rate
of US $1to RMB 7.0950 for 1Q2024 .
2
Cautionary Note

1. Overview

In billion RMB 1Q2024 1Q2023 YoY 4Q2023 QoQ
Total Revenue 159.5 150.0 +6% 155.2 +3%
Value -added Services 78.6 79.3 -0.9% 69.1 +14%
Social Networks 30.5 31.0 -2% 28.2 +8%
Domestic Games 34.5 35.1 -2% 27.0 +28%
International Games 13.6 13.2 +3% 13.9 -3%
Online Advertising 26.5 21.0 +26% 29.8 -11%
FinTech and Business Services 52.3 48.7 +7% 54.4 -4%
Others 2.1 1.0 +110% 1.9 +6%
Gross Profit 83.9 68.2 +23% 77.6 +8%
Non -IFRS
Operating Profit 58.6 45.0 +30% 49.1 +19%
Operating Margin 36.8% 30.0% +6.8ppt 31.7% +5.1ppt
Net Profit Attributable to Equity Holders 50.3 32.5 +54% 42.7 +18%
Financial Highlights
Domestic Games refers to our games business in the PRC excluding the Hong Kong Special Administrative Region, the Macao Speci al Administrative Region and Taiwan
4

Weixin & WeChat
• #1 mobile community
• MAU at 1,359m
QQ
• Mobile devices MAU at
553 m
Mobile Payment
• #1 by MAU & DAU
Mobile Browser
• #1 by MAU
Mobile Security
• #2 by MAU
Key Services Update
Games
Communications
& Social Networks
Utilities
5 1. All rankings above refer to China market, unless otherwise stated . Company data as of Mar 31, 2024
2. IDC Quarterly Public Cloud Services Tracker, 4Q23
3. IDC China Cloud Conferencing Market Share report, 1H23
IaaS
• Large scale, high -performance
IaaS network
PaaS
• #2 by revenue 2
SaaS
• #1 standalone cloud
conferencing solution by
revenue 3
China
• #1 by users and
revenue
Global
• #1 by revenue
Premium Content
• #1 by paid
subscriptions
including video,
music, literature
FinTech
Cloud
Digital
Content

2. Business Review

Revenue
7
22% 21% 21% 20% 22% 21% 21% 20% 21% 20% 19% 18% 19%
25% 23% 24% 21% 24% 24% 22% 19% 23% 21% 21% 18%
22%
7% 8% 8% 9% 8% 8% 9% 10%
9% 9% 9%
9%
8%
16% 17% 16% 15% 13% 14% 15% 17%
14% 17% 16% 19%
17%
29% 30% 30% 33% 32% 32% 32% 33% 32% 32% 34% 35% 33% 1% 1% 1% 2%
1% 1% 1% 1% 1% 1% 1% 1% 1%
135.3 138.3 142.4 144.2
135.5 134.0 140.1 145.0 150.0 149.2 154.6 155.2 159.5
1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24
Social Networks Domestic Games International Games Online Advertising FBS Others
+25% +20% +13% +8% +0.1% -3% -2% +0.5% +11% +11% +10% +7% +6%
Revenue Growth (YoY %)
Revenue by Segment (billion RMB)

+19% +18% +11% -2% -9% -8% -1% +7% +19% +22% +23% +25% +23%
64% 61% 63% 61% 64% 63% 61% 57%
63% 57% 55% 48%
54%
16% 18% 17%
16% 12% 13% 16% 17%
13% 17% 17% 22%
17%
20% 21% 20%
22% 24% 24%
24% 26%
24% 26%
28% 31%
28%
62.6 62.7 62.7
57.8 57.1 57.9
62.0 61.9
68.2 70.8
76.5 77.6
83.9
1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24
Value-added Services Online Advertising FinTech and Business Services Others
Gross Profit
8
Gross Profit Growth (YoY %)
Gross Profit by Segment (billion RMB)

Value – added Services
In billion RMB
9
Social Networks
31.0 30.5 28.2 30.5
35.1 34.5
27.0
34.5
13.2 13.6
13.9
13.6
79.3 78.6
69.1
78.6
1Q23 1Q24 4Q23 1Q24
Domestic Games International Games
-0.9%
YoY
+14%
QoQ
-2%
-2%
+28%
+8%
+3%
-3%
Social Networks
• Revenue was down 2% YoY .Revenue from music and video subscriptions,
Video Accounts live streaming service and mini games increased, while
revenue from music – and games -related live streaming services declined
sharply
• Long -form video subscription revenue increased 12 % YoY .Average daily video
subscriptions increased 8% YoY to 116 million 1,benefitting from popular self –
commissioned drama series and animated series
• Music subscription revenue increased 39 % YoY, reflecting growth in
subscriptions and ARPU .TME strengthened collaboration with Tencent Video
and released original soundtrack of a popular drama series The Legend of
Shen Li
Domestic Games
• Revenue was down 2% YoY, as growth from VALORANT, Fight of the Golden
Spatula and Lost Ark was offset by decrease from HoK due to high base in
CNY 2023 ,and decrease from Peacekeeper Elite reflected weak monetisable
content in recent quarters .However, 1Q 24 gross receipts increased 3% YoY
International Games
• Revenue increased 3% YoY, or stable in constant currency, temporarily lagging
gross receipts increase of 34 % YoY, due to long deferral periods for
Supercell’s games
• Gross receipts grew sharply driven by PUBG MOBILE and Supercell’s games
1. The average daily number of subscriptions for 1Q24

a
a
10
Communications & Social Networks
10
Communications & Social Networks
• Enable creators to share insights under their own accounts with interested followers
• Page views resumed healthy YoY growth, as AI -powered recommendation algorithms allow us to provide
targeted high -quality content more effectively
a
Video Accounts
• Total user time spent grew over 80 % YoY in 1Q 24
• As Weixin users increasingly consume more algorithm -recommended content in addition to social graph content,
time spent on Video Accounts is now over 2x of Moments
• Strengthened live streaming eCommerce ecosystem by diversifying merchandise categories and enabling more
content creators to monetise through eCommerce activities
• Facilitate merchants and content providers to engage user base, online and offline
• Total user time spent increased over 20 % YoY in 1Q 24
• Daily activations of non -game Mini Programs increased at double -digit rate YoY in 1Q 24 , especially for
productivity tools, dining services and transportation
• Mini Games gross receipts increased 30 % YoY in 1Q 24 ,with notable growth from new releases as well as
games released for over 3 years
Official Accounts
Mini Programs

Domestic Games
11 1. Source: data.ai, for 1Q24
Multiple games achieved record high gross receipts
• Fight of the Golden Spatula :popularity of new content resulted in record DAU in 1Q 24 ,
while new Chibi Champions and customisable arena boosted ARPU ;ranked #3 across all
mobile games in China by gross receipts 1
• CrossFire Mobile : new PvE content and enhanced reward system boosted user
engagement ;paying users and gross receipts reached historical highs in 1Q 24
• Arena Breakout :1)enlarged map with vehicles and 2)armour and weapons inspired by
ancient Chinese culture, contributed to new highs in average DAU, paying users and
gross receipts in 1Q 24
Arena Breakout
Peacekeeper Elite
DnF Mobile
Upcoming high production value games including DnF Mobile ,Tarisland ,Need for
Speed Mobile ,One Piece Mobile ,Delta Force :Hawk Ops
Top two flagship games gross receipts declined YoY, recovering in March
• Gross receipts of HoK in 1Q 24 declined YoY due to high base during CNY 2023 ,but were
well above the level in 1Q 22
• Gross receipts of Peacekeeper Elite declined YoY due to weak monetisable content
• However, gross receipts for both games grew YoY in March due to new monetisation
cadence and enhanced content design

PUBG MOBILE
• Gross receipts grew over 70 % YoY
to new high in 1Q 24
• Introduced new fast -moving prime
warframe, Gauss Prime
Warframe Brawl Stars
• Average DAU and gross receipts grew
by double -digit % YoY in 1Q 24 due to
popular new modes and featured
events
• Evolving from game product to game
platform : increasing time spent on
new modes beyond original battle
royale mode, such as extraction
shooter gameplay
• Average DAU more than doubled
YoY and gross receipts more than
quadrupled YoY in 1Q 24 ;ranked #3
mobile game by DAU 1
• Enlarged development team enabled
new 5v5 mode, simplified reward
system and successful community
events, increasing user engagement
International Games
1. Source: ranked #3 mobile game by DAU in international markets in March 2024, according to data.ai 12

Online Advertising
In billion RMB
21.0
26.5
29.8
26.5
1Q23 1Q24 4Q23 1Q24
+26%
YoY
-11%
QoQ
13
Overall
• Revenue grew 26 % YoY, benefitting from increased engagement and AI –
powered ad targeting
• Ad spend from all major categories ex cep t automotive increased YoY,
particularly from games, internet services and consumer goods
• Upgraded ad tech platform to help advertisers establish ad campaigns more
effectively, and made generative AI -powered ad creation tools available to
all advertisers
Weixin
• Video Accounts ad revenue grew 100 % + YoY ,underpinned by higher click –
through rate and video views
• Mini Programs ad revenue grew 40 % + YoY ,as mini games developers are
substantial advertisers, and mini games provide attractive ad inventory
Content Platforms
• Long -form video ad revenue increased double -digit YoY, as popular self –
commissioned drama series attracted marketing budgets

FinTech and Business Services
FinTech Services
• Revenue slowed to single -digit YoY growth rate
• Commercial payment growth moderated due to slow offline consumption
spending
• Withdrawal fee revenue decreased YoY as consumers are increasingly
funding commercial transactions with cash balances, and placing cash
balances in money market funds, rather than withdrawing
• Wealth management fees grew robustly YoY, with rapid increases in number
of users and average fund investments per user, primarily from low -risk
money market funds
Business Services
• Revenue grew at a teens rate YoY, mainly driven by cloud services revenue
and fees collected on Video Accounts eCommerce transactions .Gross profit
more than doubled YoY due to higher -margin revenue streams and improved
efficiency
• Revenue from our Tencent Cloud Media Services for short video/live –
streaming processing and delivery grew over 50 % YoY, with notable traction
from international clients
• WeCom revenue tripled YoY ,as merchants increasingly willing to pay for use
of customer communication functionalities
• Tencent Meeting revenue doubled YoY driven by increasing adoption and
upselling among enterprise clients ;rolled out smart framing and AI -powered
speaker tracking
14
In billion RMB
48.7 52.3 54.4 52.3
1Q23 1Q24 4Q23 1Q24
+7%
YoY
-4%
QoQ

3. Financial Review

Income Statement
In billion RMB 1Q2024 1Q2023 YoY 4Q2023 QoQ
Revenue 159.5 150.0 +6% 155.2 +3%
COPS (75.6) (81.8) -8% (77.6 ) -3%
Gross profit 83.9 68.2 +23% 77.6 +8%
Operating expenses (32.3) (31.6) +2% (38.2) -15%
Other gains , net 1 1.0 1.4 -32% 2.0 -48%
Operating profit 1 52.6 38.0 +38% 41.4 +27%
Net gains/(losses) from investments and others 1 0.6 (0.6) N/A (6.7) N/A
Interest income 1 4.2 3.0 +43% 3.9 +8%
Finance costs (2.8 ) (2.6) +7% (3.5) -20%
Share of profit of associates & JV s, net 2.2 0.1 +2633% 2.4 -11%
Income tax expense (14.1) (11.5) +24% (9.7) +47%
Net profit 42.7 26.4 +62% 27.8 +53%
Net profit attributable to equity holders 41.9 25.8 +62% 27.0 +55%
Diluted EPS in RMB 4.386 2.639 +66% 2.807 +56%
Non -IFRS
Operating profit 1 58.6 45.0 +30% 49.1 +19%
Net profit attributable to equity holders 50.3 32.5 +54% 42.7 +18%
Diluted EPS in RMB 5.263 3.353 +57% 4.443 +18%
Weighted average number of shares in million 2 9,484 9,657 -1.8% 9,546 -0.6%
16
1. Starting 4Q23, we present investment -related gains/(losses), donations and others (previously within “Other gains/(losses), net” ) and interest income below operating profit line to better reflect results of day -to-day operations 2. Weighted average number of shares for calculation of diluted EPS includes the dilutive effect of share options and awarded sh are s as determined under the treasury stock method.

Non – IFRS Adjustments
In billion RMB IFRS
1Q20 24 SBC
Net (gain s)/
losses from
investee
companies 1
Amortisation
of intangible
assets
Impairment
provision s2 SSV & CPP 3 Tax effects Non -IFRS
1Q20 24 YoY change QoQ change
Operating profit 52.6 4.7 – 1.2 – 0.1 – 58.6 +30% +19%
Net profit 42.7 6.2 (1.5 ) 2.8 1.6 0.1 (0.6) 51.3 +54% +17%
Net profit attributable
to equity holders 41.9 6.0 (1.4 ) 2.6 1.5 0.1 (0.4) 50.3 +54% +18%
Operating margin 33.0% 36.8% +6.8ppt +5.1ppt
Net margin 26.7% 32.2% +9.9ppt +4.0ppt
17
Note:
1. Including net (gains)/losses on deemed disposals/disposals of investee companies, fair value changes arising from investee companies, and other expenses in relation to equity transactions of investee
companies.
2. Mainly including impairment provisions for associates, joint ventures, goodwill and other intangible assets arising from a cqu isitions.
3. Mainly including donations and expenses incurred for the Group’s Sustainable Social Value & Common Prosperity Programme initi atives.

45.1 48.8 46.4 42.7
36.7 40.6
46.3 44.2 41.7
48.9 52.3 56.8 54.8
Online Advertising (%)
55.1 52.9 53.0
48.7 50.4 50.6 51.7 49.8
53.9 54.0 55.5 53.7
57.3
Value -added Services (%)
Gross Margins
32.3 32.0 28.5 27.1
31.6 33.3 33.3 33.6 34.5 38.4 40.9 43.9 45.6
1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24
FinTech and Business Services (%)
18
46.3 45.4 44.1
40.1 42.1 43.2 44.2 42.6
45.5 47.5 49.5 50.0
52.6
Overall Gross Margin (%)

9.4 9.1
10.8
9.1
1Q23 1Q24 4Q23 1Q24
S&M
in billion RMB
Operating Expenses
19
R&D
in billion RMB
G&A (excl. R&D)
in billion RMB
15.2 15.7 16.4 15.7
1Q23 1Q24 4Q23 1Q24
Non -IFRS Non -IFRS Non -IFRS
7.0 7.5
11.0
7.5
1Q23 1Q24 4Q23 1Q24
+7%
YoY
-31%
QoQ
1Q24 S&M grew by 10 % YoY or declined by 32% QoQ
+3%
YoY
-5%
QoQ
1Q24 R&D grew by 6% YoY or declined by 2% QoQ 1Q24 G&A (excl. R&D) grew by 2% YoY or
declined by 12% QoQ
-3%
YoY
-15%
QoQ

31.4
28.9 27.3
21.7
25.6 25.2
27.3
25.1
30.0 30.9
33.4
31.7
36.8
Non -IFRS Operating Margin (%)
25.5 25.4
22.8
17.9 19.4
21.6
23.8
21.1 22.3
25.9
29.6 28.2
32.2
1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24
Non -IFRS Net Margin (%)
Non – IFRS Margin Ratios
20

In billion RMB 1Q2024 1Q2023 YoY 4Q2023 QoQ
Operating CAPEX 6.6 1.0 +557% 6.7 -1%
Non -operating CAPEX 7.8 3.4 +127% 0.8 +832%
Total CAPEX 14.4 4.4 +226% 7.5 91%
Operating Cash Flow 72.3 62.3 +16% 54.0 +34%
Less: CAPEX Paid (15.2) (4.6) +229% (9.3) +62%
Payments for media content (3.7) (4.4) -17% (7.7) -52%
Payments for lease liabilities (1.5) (1.5) +2% (2.8) -45%
Free Cash Flow 51.9 51.8 +0.4% 34.2 +52%
Total Cash 445.2 370.5 +20% 403.3 +10%
Less: Total Debt (352.7) (339.0) +4% (348.6) +1%
Net Cash 92.5 31.5 +194% 54.7 +69%
CAPEX, FCF and Cash Position
21
• Repurchased ~51 million shares with an aggregated cost of ~RMB13.5 billion during 1Q24
• As at 31 Mar 2024, the f air value of our shareholdings 1in listed investee companies (excluding subsidiaries) was ~RMB522
billion (USD74 billion) and the carrying book value of our unlisted investee companies was ~RMB329 billion (USD46 billion)
1. Including those held via special purpose vehicles, on an attributable basis.

4. Q&A

Tencent Holdings Limited
2024 First Quarter Results Presentation
Thank you!
https://www.tencent.com/ir