Comparison of BAT financial results: Tencent earns more money than Ali.
As Tencent recently announced its financial results, the results of the three domestic Internet giants Tencent, Alibaba and Baidu in the fourth quarter of 2014 have been announced. From the annual data comparison, Tencent revenue indicators are relatively leading, Ali catch-up momentum is obvious, Baidu is relatively out-of-date.
from the perspective of a single quarter in 2014, Alibaba's revenue exceeded Tencent for the first time, nearly twice as much as Baidu. In terms of net profit, Ali and Tencent are basically the same, and the gap between them is nearly twice that of Baidu. However, Ali's net profit is down 28% from the same period last year.
this is also the first annual data and financial report released by Ali Group since IPO. Some interesting phenomena can be found by comparing the data of BAT.
strong > Tencent's advertising revenue has increased significantly in a single quarter / strong >
the results show that Tencent's revenue in the fourth quarter of 2014 was 20.978 billion yuan (US $3.428 billion), an increase of 24% over the same period last year, and its net profit was 5.86 billion yuan (US $958 million), an increase of 50% over the same period last year.
Tencent's revenue growth in the fourth quarter has several major drivers: mobile games, social network revenue, and online advertising revenue. Among them, Tencent's online game revenue in the fourth quarter was 11.964 billion yuan, up 41% from the same period last year, and social network revenue was 5.173 billion yuan, up 50% from the same period last year.
Tencent's online advertising revenue increased most significantly in a single quarter, reaching 2.627 billion yuan, an increase of 75% over the same period last year, mainly due to the growth of video advertising revenue and the promotion of Qzone's mobile version and Wechat public accounts. make mobile social network effect advertising revenue increase.
comparing the results of the third and fourth quarters of 2014, we can find that Ali's performance in the fourth quarter is very eye-catching. Alibaba's fourth-quarter revenue was 26.179 billion yuan ($4.219 billion), up 40 percent from 18.745 billion yuan a year earlier.
of this total, Alibaba Group's revenue from China's commercial retail business in the fourth quarter was 21.275 billion yuan (about US $3.429 billion), accounting for 82% of the total revenue, up 32% from 16.149 billion yuan in the same period last year.
an important reason for Ali's substantial growth in the fourth quarter is that the fourth quarter of each year is the peak season for e-commerce sales, with large-scale promotions such as double 11 and double 12 at the end of the year, especially the double 11 transaction volume reached 57.1 billion yuan in the fourth quarter of 2014. Tmall and Taobao get a lot of commission and advertising.
however, Ali Group's net profit in the fourth quarter was 5.983 billion yuan (US $964 million), down 28% from 8.357 billion yuan in the same period last year.
relatively speaking, Baidu has the best revenue growth. Baidu's fourth-quarter revenue was 14.05 billion yuan ($2.264 billion), up 47.5% from a year earlier. Baidu made a net profit of 3.229 billion yuan ($520.4 million) in the fourth quarter, up 16.0% from a year earlier.
strong > Ali's annual net profit faces the highest pressure from JD.com / strong >
the financial report shows that Tencent's total revenue in 2014 was 78.932 billion yuan (US $12.899 billion), an increase of 31% over the same period last year. The net profit was 23.81 billion yuan (US $3.891 billion), an increase of 54% over the same period last year. Tencent's board of directors also recommended a dividend.
Ma Huateng, chairman and CEO of Tencent, said: "Tencent social platforms QQ and Wechat have achieved continuous innovation and growth, and Tencent has made breakthroughs in emerging areas, including network security, Android app store, mobile payment and so on."
Ma Huateng said that Tencent implements a connection strategy and establishes strategic partnerships with a large number of leading vertical partners through investment and business cooperation. As the mobile Internet permeates users' daily lives, Tencent will participate in the growth of the vertical field.
Ali earned 70.8 billion yuan (about US $11.32 billion) in 2014, an increase of 44% over the previous year. Net profit was 26.994 billion yuan (US $4.354 billion), an increase of 22.37% over the previous year. From the perspective of revenue scale, Ali increased significantly in 2014.
especially in the fourth quarter, transactions on Taobao Mall totaled 494 billion yuan ($80 billion), up 43 percent from a year earlier, while transactions on Tmall totaled 293 billion yuan ($47 billion), up 60 percent from a year earlier.
the total value of mobile transactions of Ali Group in the fourth quarter was 327 billion yuan ($53 billion), an increase of 213% over the same period last year and 64% over the previous quarter. The total value of mobile transactions accounted for about 42% of all transactions in the fiscal quarter, compared with 36% in the previous quarter.
Ali still faces great worries. The most obvious thing is that in early 2015, Taobao fought against the State Administration for Industry and Commerce, which was called "Dragon and Tiger fighting" by foreign media. some people think that this incident may be the biggest crisis that Ali has faced since its founding.
then, Zhang Mao, director of the State Administration for Industry and Commerce, met with Alibaba Chairman Ma Yun. Ma Yun said that Alibaba would cooperate with the government to crack down on counterfeiting and strengthen daily online inspection and spot inspection.
the "Dragon and Tiger fight" triggered Ali's share price to continue to fall, which aroused the concern of US law firms. A US shareholder rights law firm announced that it had launched an investigation into Ali's suspected inadequate disclosure of information to see if it had violated US securities law.
the bigger challenge comes from rivals. With the decline of domestic tolerance for fakes and the upgrading of consumption, Taobao and Tmall are facing a squeeze from B2C such as JD.com and SUNING. In March this year, President Tmall quietly replaced, showing Jack Ma's worry about Tmall's slowing growth.
Ali Group recently dismissed Wang Yulei (Qiao Feng) Tmall as president. At the same time, the unified management of its platforms (Taobao, Tmall, Juhuashuashuo), under the responsibility of Zhang Jianfeng (Xingmadi), and reporting to COO Zhang Yong (Xiaoyaozi), preparing to concentrate on meeting the challenge.
Baidu's total revenue in 2014 was 49.052 billion yuan ($7.906 billion), an increase of 53.6 percent over the previous year. Net profit was 13.187 billion yuan ($2.125 billion), an increase of 25.4% over the previous year.
in the past two years, Baidu has attracted a number of world's top scientists, including Wu Enda, Wang Haifeng, Yu Kai, Zhang Tong, Jia Lei, Wu Hua, and Wu Ren, as well as outside talents such as Zhang Yaqin, former senior vice president of Microsoft, and Liu Jun, founder of Yunyun.
at the same time, Baidu's business has also been greatly adjusted: Baidu's existing business group and division are integrated into three major business groups: mobile service group, emerging business group, and search business group.
the three new business groups of Baidu represent the three major business systems of Baidu's "old, middle-aged and young people" respectively. Among them, search business is the traditional basic set of Baidu, mobile service is the core of Baidu's future, and emerging business is responsible for Baidu's "opening up the frontier".
Li Yanhong said that in the past two years, Baidu has not been easy, and at one point it was attacked by competitors in the PC field. At the same time, the spring tide of the mobile Internet is coming too fast, and Baidu seems a little ill-prepared in the face of the rapid changes of the times.
"in the most difficult times, we have allocated more funds to increase investment in research and development. We continue to expand the scale of the US Silicon Valley R & D center, and carry out in-depth layout in the fields of artificial intelligence, big data, voice, image recognition and so on. "
Baidu will launch an attack in 2015. Li Yanhong said that in education, health care, finance, transportation, tourism and other industries, countless opportunities are waving to Baidu. Deep ploughing every industry, Baidu has the opportunity to create a Baidu.
in 2015, with the rise of Xiaomi, JD.com and other enterprises, what new changes will take place in China's Internet pattern? it is worthy of industry people's expectation and attention.
Edit: yvonne