Prime Highlights
- Tencent achieved strong third-quarter growth with a 15% year-on-year revenue increase, fueled by robust performance in gaming and advertising.
- The company continues to enhance its HunYuan AI model and expand globally, reinforcing its position as a major player in AI and cloud computing.
Key Facts
- Tencent’s total Q3 revenue reached ¥192.9 billion ($27.12 billion), surpassing analyst expectations of ¥189.2 billion, while operating profit stood at ¥63.6 billion.
- International gaming revenue jumped 43% year-on-year to ¥20.8 billion, driven by popular titles like Clash Royale and Dying Light: The Beast, and contributions from Supercell and recent acquisitions.
Background
Chinese technology major Tencent Holdings Ltd. on Thursday reported a 15% year-on-year rise in revenue for the third quarter of 2025, with strong growth in gaming and advertising supported by the company’s expanding artificial intelligence (AI) capabilities.
Tencent’s total revenue reached ¥192.9 billion ($27.12 billion), exceeding analyst forecasts of ¥189.2 billion, according to data from LSEG. The company’s operating profit stood at ¥63.6 billion, also ahead of the ¥58.01 billion expected by analysts.
The company’s core business segment, covering gaming, marketing, and social media, generated ¥95.9 billion, marking a 16% rise from a year earlier. Domestic gaming revenue increased by 15%, driven largely by the strong performance of new titles such as “Delta Force” and “VALORANT MOBILE.” The latter set a record as the most successful mobile game launch in China this year.
International gaming continued to be Tencent’s fastest-growing division, rising 43% year-on-year to ¥20.8 billion, powered by titles like “Clash Royale” and “Dying Light: The Beast”, alongside higher contributions from Supercell and recent acquisitions.
Tencent also increased its spending to develop its AI and cloud computing operations and plan its expansion in Europe to compete with AWS, Google Cloud, and Microsoft Azure.
The company improved its HunYuan AI model to perform better in coding, math, and science and started adding DeepSeek to some of its products.
Tencent has seen its shares rise 56.7% this year, showing investors’ confidence in its AI-driven growth strategy.
