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Chinese Tencent Technology Company is a game giant and a mother company WeChat, a widespread application for social messages in China.
Chen Sin | Getty Images | Gets the image
Favorable On Wednesday, it was reported about the annual growth in the top and bottom line in the first quarter, which is fueled by accelerated growth in its key game business.
While the income bypassed the expectations, its net profit was not enough.
Here’s how the Tencent did in the first quarter of 2025 vs. LSEG’s estimates:
- Income: 180.02 billion Chinese yuan ($ 25 billion) against 174.63 billion expected
- Pure Profit: 47.8 billion yuan, against 52.2 billion yuan who were waiting
Revenue increased by 13% compared to last year, and net income increased by 14%.
Tencent is one of the largest game companies in the world with revenues from the names that cause overall performance. The income from internal games, which is sales from China, increased by 24% compared to last year to 42.9 billion yuan thanks to the performance of “Honor of Kings” and “Elite Meatforkeper Elite”, as well as in new names such as “DNF Mobile”.
The revenue from the international gaming business was 16.6 billion yuan, 23% compared to the last year, due to games such as “Story Stars” and “Pubg Mobile”.
Tencent also manages WeChat, the largest in China, a messaging application that has more than 1.4 billion active users monthly. The so -called Super App allows users to do everything: from mobile payments to games and reservation of flights.
A huge User base allowed Tencent to start monetizing the platform through advertising, and it has become a fast -growing business for the Chinese technological giant.
Marketing services increased by 20% a year to 31.9 billion in the year. Tencent This was due to the “reliable demand for the advertiser” for his video, search and mini -program product in WeChat. Mini -program are applications that are located in WeChat.
Tencent AI Expenditure Skok
Tencent said his capital expenses for the first quarter amounted to 27.5 billion yuan, which is 91% compared to the same period last year as they continue to spend on their efforts related to artificial intelligence.
The company, which is outdated in Shenzhen, talks to the capabilities of AI, including its AI chatbot called Yuanbao, as well as its own fundamental Hunyuan model.
“AI’s capabilities have already contributed to our business, such as the advertising and evergreen games. We have also intensified our costs for new AI opportunities, such as the Yuanbao and AI app in Weisin,” Tencent said in his earnings.
“We believe that the operating leverage from our existing qualitative revenue flows will help to absorb additional costs associated with these II investments and will contribute to a healthy financial indicator during this investment phase.
