Financial Highlights
- Total revenue: RMB192.9 billion, up 15% year-on-year
- Gross profit: RMB108.8 billion, up 22% year-on-year
- Non-IFRS operating profit: RMB72.6 billion, up 18% year-on-year
- Net profit: RMB72.8 billion, up 19% year-on-year
- Operating margin: 38%, an increase from 37% in Q3 2024
- Share repurchases: 35.4 million shares bought back for HKD21.1 billion
Segment Performance
- Value-Added Services (VAS): Revenues increased by 16% to RMB95.9 billion. Domestic games such as Delta Force, Honour of Kings, and Peacekeeper Elite contributed strongly, alongside the expansion of VALORANT to mobile platforms.
- International Games: Revenues surged 43% year-on-year to RMB20.8 billion, driven primarily by higher international demand.
- Marketing Services: Revenues rose 21% to RMB36.2 billion, attributed to higher ad impressions, increased ad spending across industries, and the adoption of AI-powered ad targeting.
- FinTech and Business Services: Revenues grew 10% year-on-year to RMB58.2 billion, bolstered by robust commercial payment growth and increased cloud and eCommerce technology service fees.
Technology and AI Innovations
- HunYuan Large Language Model: Enhanced complex reasoning abilities, especially in coding, now considered industry leading.
- AI-Driven Business: Stronger demand for enterprise AI services and increased marketing efficiency, with higher eCPMs (effective cost per mille) due to smarter ad targeting.
Chairman’s Statement
Ma Huateng, Chairman and CEO, emphasized that Tencent’s solid growth reflects ongoing investments in next-generation AI—highlighting the company’s advancements in 3D generation models and the continuing traction of agentic AI capabilities within the Weixin ecosystem.
Operational Metrics
- Commercial payment volumes showed robust growth, especially in online channels, with improved trends for offline payment in the retail and transportation sectors.
- Increased engagement across gaming, social media, and business services continues to support long-term growth and innovation at Tencent.
Outlook
Tencent’s third-quarter results underscore not only the company’s resilience in the competitive Chinese tech landscape but also its growing international presence in gaming and technology-driven services. The integration of advanced AI models is poised to further enhance operational efficiencies, user engagement, and revenue opportunities in future quarters.
