The Tencent emblem is displayed on the outside of a constructing on the firm’s headquarters, with a surveillance digital camera seen within the foreground, on November 30, 2024, in Shenzhen, Guangdong Province, China.
Cheng Xin | Getty Pictures Information | Getty Pictures
Tencent on Wednesday reported a 15% bounce in second-quarter income as a powerful efficiency in its gaming unit and AI investments boosted development.
Here is how Tencent did within the first quarter of 2025:
- Income: 184.504 billion Chinese language yuan ($25.7 billion), in comparison with 161.117 billion Chinese language yuan in the identical interval final 12 months
- Working revenue: 63.052 billion yuan, versus 57.313 billion yuan final 12 months
Home video games income, which accounts for gross sales from China, rose 17% year-on-year to 40.4 billion yuan due to the efficiency of the corporate’s newly-released “Delta Drive” sport and evergreen titles resembling “Honor of Kings,” “VALORANT” and “Peacekeeper Elite.”
Income from its worldwide gaming enterprise totaled 18.8 billion yuan, a 35% year-on-year enhance pushed by video games resembling “PUBG Cellular,” and the recently-released “Dune: Awakening.”
In the meantime, Tencent stated that AI-driven enhancements to the corporate’s promoting platform and Weixin transaction ecosystem helped enhance advertising providers income by 20% within the quarter to 35.8 billion yuan.
“In the course of the second quarter of 2025, we delivered double-digit income and non-IFRS working revenue development on a year-on-year foundation, as we invested in, and likewise benefitted from, utilising AI,” stated Tencent CEO Ma Huateng.
Tencent stated its capital expenditures surged 119% to 19.1 billion yuan within the second quarter, because the tech big invested in AI upgrades for promoting, its gaming enterprise and social media service Weixin.
The Shenzhen-headquartered firm’s music unit posted better-than-expected outcomes due to development in sturdy development from subscription and non-subscription on-line music income, in accordance with Citi’s Alicia Yap. The agency stated Tencent Music had 124 million music subscribers, up barely from 123 million subscribers famous in Tencent’s first-quarter report.
Waiting for the second half of the 12 months, Tencent Music “continues to drive high-quality development in subscription revenues, development momentum from followers financial system, live performance and advert revs will help faster-than-previously anticipated full 12 months development,” Yap stated in a notice.
Tencent, like different cloud computing companies, has put the next give attention to promoting synthetic intelligence instruments as a option to enhance income and differentiate its choices from these of its rivals.
Earlier this summer season, Tencent revealed it’s seeking to convey its cloud computing capabilities to Europe, pitching it towards U.S. hyperscalers Amazon, Microsoft and Alphabet-owned Google, which collectively make up 70% share of Europe’s cloud market.
“We’re striving to convey additional advantages of AI to shoppers and enterprises via powering extra use instances inside Weixin, driving utilization of our AI native app Yuanbao, and upgrading the capabilities of our HunYuan basis fashions,” Huateng stated within the Wednesday earnings launch.
— CNBC’s Arjun Kharpal contributed to this report.
