Tencent Q2 earnings 2025

Tencent on Wednesday reported a 15% leap in second-quarter income as a robust efficiency in its gaming unit and AI investments boosted development.

Here’s how Tencent did within the first quarter of 2025:

• Revenue: 184.504 billion Chinese yuan ($25.7 billion), in comparison with 161.117 billion Chinese yuan in the identical interval final 12 months
• Operating revenue: 63.052 billion yuan, versus 57.313 billion yuan final 12 months

Domestic video games income, which accounts for gross sales from China, rose 17% year-on-year to 40.4 billion yuan because of the efficiency of the corporate’s newly-released “Delta Force” recreation and evergreen titles similar to “Honor of Kings,” “VALORANT” and “Peacekeeper Elite.”

Revenue from its worldwide gaming enterprise totaled 18.8 billion yuan, a 35% year-on-year improve pushed by video games similar to “PUBG Mobile,” and the recently-released “Dune: Awakening.”

Meanwhile, Tencent mentioned that AI-driven enhancements to the corporate’s promoting platform and Weixin transaction ecosystem helped increase advertising providers income by 20% within the quarter to 35.8 billion yuan.

“During the second quarter of 2025, we delivered double-digit revenue and non-IFRS operating profit growth on a year-on-year basis, as we invested in, and also benefitted from, utilising AI,” mentioned Tencent CEO Ma Huateng.

Tencent mentioned 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 because of development in robust development from subscription and non-subscription on-line music income, in response to Citi’s Alicia Yap. The agency mentioned Tencent Music had 124 million music subscribers, up barely from 123 million subscribers famous in Tencent’s first-quarter report.

Looking forward to the second half of the 12 months, Tencent Music “continues to drive high-quality growth in subscription revenues, growth momentum from fans economy, concert and ad revs will support faster-than-previously expected full year growth,” Yap mentioned in a be aware.

Tencent, like different cloud computing companies, has put a better deal with promoting synthetic intelligence instruments as a technique to increase 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 are striving to bring further benefits of AI to consumers and enterprises through powering more use cases within Weixin, driving usage of our AI native app Yuanbao, and upgrading the capabilities of our HunYuan foundation models,” Huateng mentioned within the Wednesday earnings launch.

— CNBC’s Arjun Kharpal contributed to this report.