Chinese tech company TENENT is a gaming giant and the original company of WeChat, which is a ubiquitous social message app in China.
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Tencent On Wednesday, a rapid growth in its major gaming business reported annual growth in its top and lower line in the first quarter.
While revenue defeated expectations, its net profit decreased.
Here is told how Tencent did in the first quarter of 2025 vs. LSEG projections:
- Income: 180.02 billion Chinese Yuan ($ 25 billion), vs 174.63 billion yuan expected
- Pure benefits: 47.8 billion yuan, vs 52.2 billion yuan expected
Revenue increased by 13% year-on-year, while net profit increased 14%.
Tencent is one of the largest gaming companies in the world, in which revenue from its hit title is running its overall performance. Thanks to the domestic sports revenue, which is sales from China, 24% year-on-year to 42.9 billion yuan as well as new titles such as “DNF Mobile” for the performance of “Honor of Kings” and “Peacekeeper Elite”.
Revenue from your international gaming business 23% year-on-year growth by sports like 16.6 billion yuan, “Crol stars” and “PUBG Mobile”.
Tencent WeChat – also runs China’s largest messaging app that claims more than 1.4 billion monthly active users. The so -called super app allows users to do everything from mobile payments to playing games and booking flights.
The huge userbase has allowed Tencent to start mudification of the platform through advertising, and it has become a fast growing business for Chinese tech veterans.
Revenue of marketing services rose 20% to 31.9 billion yuan in the first quarter. Tencent This was due to “strong advertiser demand” for your video, search and mini program products within WeChat. Mini programs are apps that are hosted within WeChat.
Tensent AI spending increases
Tencent stated that its capital expenditure for the first quarter was 91% from the same period last year in the total period of 27.5 billion yuan, as it continues to spend on its artificial intelligence related efforts.
The company with Shenzhen-Mukhyamalaya is talking about its AI abilities, including AI chatboats named Yuanbao, as well as its own basic model Hunyuan.
“AI abilities already contributed to our businesses, such as performance advertisements and evergreen games. We also increased their expenses in new AI opportunities, such as Yuanbao App and AI in AI,” Tensant said in its earnings.
“We assume that operating lewt from our existing high quality revenue currents will help absorb additional costs related to these AI-related investments and contribute to healthy financial performance during this investment phase.
