Chinese tech giant posted revenue of 184.504 billion yuan ($25.7 billion) for the quarter
SHENZHEN: Tencent Holdings Ltd. on Wednesday reported a 15% rise in second-quarter revenue, driven by robust growth in its gaming division and strategic investments in artificial intelligence.
The Chinese tech giant posted revenue of 184.504 billion yuan ($25.7 billion) for the quarter ended June 30, up from 161.117 billion yuan a year earlier. Operating profit climbed to 63.052 billion yuan, compared to 57.313 billion yuan in the same period last year.
Domestic gaming revenue rose 17% year-on-year to 40.4 billion yuan, fueled by the success of newly launched “Delta Force” and enduring titles such as “Honor of Kings,” “VALORANT,” and “Peacekeeper Elite.” International gaming revenue surged 35% to 18.8 billion yuan, led by “PUBG Mobile” and the debut of “Dune: Awakening.”
Tencent also credited AI-driven enhancements to its advertising platform and Weixin transaction ecosystem for a 20% jump in marketing services revenue, which reached 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,” CEO Ma Huateng said.
Capital expenditures soared 119% to 19.1 billion yuan, reflecting Tencent’s aggressive push to upgrade its AI capabilities across gaming, advertising, and social media.
Tencent Music, a subsidiary of the company, exceeded expectations with 124 million subscribers, up from 123 million in Q1. Citi analyst Alicia Yap noted that growth in both subscription and non-subscription revenue contributed to the strong performance.
Looking ahead, Yap said Tencent Music is poised for “faster-than-previously expected full year growth,” citing momentum in fan-driven economies, concerts, and advertising.
Tencent is also expanding its cloud computing footprint, with plans to enter the European market and compete with U.S. hyperscalers Amazon, Microsoft, and Google.
“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 said.