On March 18th, Tencent Holdings released its full-year results for 2019.In 2019, annual revenue increased 21% year-on-year to RMB377.889 billion, and net profit (Non-IFRS) increased 22% year-on-year to 94.351 billion. If calculated in terms of days, it would make about 260 million yuan a day.

In the fourth quarter of 2019, Tencent’s revenue increased by 25% year-on-year to 105.767 billion yuan, and net profit (Non-IFRS) increased 29% year-on-year to 25.484 billion yuan. This is the first time that Tencent’s single-quarter revenue exceeded the 100 billion yuan mark, refreshing history  recording.

The 2019 financial report is also the first complete annual financial report since Tencent transformed the Internet of the industry. The revenue on Tencent’s consumer Internet is based on traffic, mainly advertising, games and the latest e-commerce (payment); the Industrial Internet is represented by cloud computing.

Financial report shows that the gaming industry in 2018 has a low base, the growth rate of Tencent’s game business is limited, and the growth of advertising business has also slowed. Fintech and corporate services are the main drivers of Tencent’s current revenue growth. On the other hand, the game business is the most profitable business, and the proportion of the game business also determines the profit margin of Tencent. When Tencent launched the Industrial Internet, the growth rate of its net profit had declined. In 2019, Tencent Cloud optimized its supply chain and expanded its business scale, and its gross profit margin improved.

Tencent cloud growth rate exceeds 86.8%

On September 30, 2018, Tencent carried out organizational structure upgrade. It is difficult for the outside world to regard Tencent as a pure Internet company, especially when cloud computing has become the company’s fastest growing business.

Tencent’s financial report shows that in 2019, Tencent Cloud’s annual revenue exceeded 17 billion yuan. Tencent’s cloud revenue in 2018 was 9.1 billion yuan, which also means that Tencent Cloud’s revenue growth in 2019 is more than 86.8%, which is the fastest growing segment of all businesses.

Compared with companies in the same industry, although the revenue scale is not as big as the global giants of cloud computing, Tencent’s cloud revenue growth rate is faster than traditional cloud computing vendors.

On February 11, 2020, IDC released the “Tracking of China’s Public Cloud Service Market (2019Q3)” report. In Q3 2019, the size of China’s public cloud IaaS market reached 14.46 billion yuan, a year-on-year increase of 62.2%. Alibaba Cloud, Tencent Cloud and Kingsoft Cloud are the top three companies in Internet cloud service providers. Among them, Tencent Cloud benefited from maintaining a high penetration rate in the game and video industry, increasing use of existing customers, and expanding the customer base from the education, finance, and retail industries, and further expanding its comprehensive operating income.

In the statistical caliber of Tencent’s financial report, the corporate services and financial technology of Tencent Cloud are disclosed together. As the fastest growing business, the proportion of corporate services and fintech revenue is gradually increasing, from 25% in the first quarter of 2019 to 28% in the fourth quarter of 2019.

Tencent Cloud paid customers more than 1 million. Within two months of the launch of the Tencent Conference, the number of daily active accounts exceeded 10 million; the number of visits to Tencent’s medical code exceeded 600 million; and the health code was exceeded 900 million by 300 counties and cities and the cumulative visits reached 8 billion times.

In May 2019, Tencent announced the achievement of the “double hundred” milestone with a total network of more than 1 million servers and a peak bandwidth of 100T. So far, Tencent has become the first company in China and the fifth company in the world to have more than one million servers. It is also the first company in China with a peak bandwidth of 100T.