Chinese tech company TENENT is a gaming giant and the original company of WeChat, which is a ubiquitous social message app in China.
Cheng Shin | Getty Image News | Getty images
Tencent On Wednesday, the fourth quarter beet was posted on the top and lower line operated by boom in gaming and advertising revenue.
Here is told how Tencent did in the fourth quarter of 2024 vs. Refinitiv projections:
- Income: 172.4 billion Chinese Yuan ($ 23.9 billion), vs 168.9 billion yuan is expected.
- Beneficial benefits for the company’s equity holders: 51.3 billion compared to 46.03 billion yuan.
Revenue increased from 11% year-on-year, while the profit was 90% vs. in the same period in 2023.
Tencent is known as one of the world’s largest gaming firms. The revenue of domestic sports in China rose 23% to 33.2 billion yuan in the fourth quarter. Tencent said the increase was due to a low base in the previous year period, as well as an increase in some of its hit games, including the honor of Kings and Peacekeeper Elies.
The annual growth rate for domestic games increased in the December quarter, Compared to the last three months period.
International sports revenue increased from 15% year-on-year to 16 billion. Over the years, Tencent has made efforts abroad with sports such as PUBG Mobile, as the domestic sports market has slowed down between the comprehensive economic and regulatory headwinds in the market.
Tencent’s marketing services-or its advertising business increased by 17% to 35 billion yuan in the fourth quarter. Tencent runs China’s largest messaging app WeChat with more than 1.38 billion monthly active users. The company is working on mashing those users through various advertising products such as video and search.
AI Focus
While Tencent is one of the world’s largest gaming companies, Tech Giants have focused a major focus on becoming a major artificial intelligence player in China over the last two years, which put various AI models.
On Tuesday, the company launched its Hunyuan3D-2.0 model that can convert lessons or images into 3D graphics. In February, Tencent unveiled Turbo S, an AI model designed to answer the user’s questions as soon as possible.
Tencent said AI is improving various products.
Tencent stated that its growth in marketing services has been managed by the demand for “strong” advertiser, as well as “our AI-run advertising infrastructure growing growth”.
Investors are still seeing how TENENT is planning to make his AI investments a milestone.
But it has come up with an increase in spending. Tencent said its capital expenditure in 2024 was 76.8 billion yuan, which was more than 23.89 billion in 2023.
Tencent said that it has re -organized teams and increased investment will promote growth.
“A few months ago, we have reorganized our AI teams to focus on both the rapid product innovation and deep model research, increased our AI-related capital expenditure, and increased our R&D and marketing efforts for our AI-origin products,” Tensant said in its earning statement.
“We believe that these steps-up investment will generate r from the long-term value by the productivity in our advertising business and the longevity of our sports as well as our AI applications quick consumer use and the adoption of our AI services enterprises.”
The AI ​​push of the Shenzhen-faculty firm symbolizes the current status of the competition among the technical veterans of China, which was released earlier this year by the Startup Deepsek and its highly skilled artificial intelligence models.
AI updates have been released thick and fast from companies including Alibaba and Baidu.
Last week, Alibaba launched a new version of its AI auxiliary app which will be. Powered by your own Qwen AI logic modelBaidu on sunday Released two new models Including a new logic model.
Tencent is also working with its AI model as well as rivals. The company has an in-house AI chatboot, called Yuanbao, which is based on its own Hunyuan Foundational model as well as R1 of Deepsek. Tencent has also sought to integrate the technique of Deepsek in some of its other products, including WeChat’s search features in China.
This braking news story is being updated.
