Tencent's 2024 Q2 Financial Data Revenue Growth and Negotiations with Apple

TapTechNews August 14th news, Tencent today announced the financial data for the second quarter of 2024. Due to the growth of high-margin income sources such as game revenue in the domestic market and service fees of mini-game platforms, Tencent's Q2 gross profit increased by 21% year-on-year to 85.9 billion yuan, and the gross margin increased from 54% in the same period last year to 57%.

Bloomberg reported that James Mitchell, Tencent's chief strategy officer, admitted for the first time in the earnings conference call that Tencent is negotiating with Apple about the revenue of WeChat mini-games and exploring the way to provide in-app transactions through Apple's iOS payment system.

The financial report shows that Tencent's revenue in the second quarter was 161.1 billion yuan (TapTechNews note: 34.6 billion for domestic games + 13.9 billion for international games + 30.3 billion for social networks + 50.4 billion for financial technology and enterprise services + 29.9 billion for online advertising + 2 billion for others), an increase of 8% year-on-year.

In the second quarter, Tencent's R & D expenditure was 17.277 billion yuan, an increase of 8% year-on-year; the growth rates of gross profit and operating profit reached 21% and 27% respectively, continuously outpacing the revenue growth rate.

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Tencent Holdings' revenue in the second quarter of fiscal year 2024 was 1611.2 billion yuan, an increase of 8% year-on-year, and the monthly active users of WeChat and WeChat were 13.7 billion, an increase of 3% year-on-year.

It is said that Apple is pressuring Tencent and ByteDance: demanding to plug the payment loophole that circumvents the in-app purchase commission, otherwise refusing to update and list WeChat and TikTok.