Tencent Sees Profit Growth Through Strong Gaming Performance
(MENAFN) Tencent, the prominent Chinese technology corporation, reported a 13 percent year-on-year increase in revenue on Wednesday, mainly driven by impressive growth in its primary gaming division.
According to a statement from the company, Tencent's revenue reached 180.02 billion yuan (USD25 billion) in the first quarter of 2025.
The company also saw a 14 percent year-on-year rise in its net profit, which amounted to 47.8 billion yuan (USD6.63 billion) during the same period.
Tencent’s overall performance was heavily supported by the success of its gaming segment, solidifying its position as one of the largest gaming companies globally.
Revenue from its domestic gaming market, driven by blockbuster titles such as "Honor of Kings" and "Peacekeeper Elite," along with newer releases like "DnF Mobile," grew by 24 percent year-on-year, reaching 42.9 billion yuan (USD5.95 billion).
On the international front, the firm’s gaming division generated 16.6 billion yuan (USD2.3 billion) in revenue, marking a 23 percent year-on-year growth, bolstered by popular games like "Brawl Stars" and "PUBG Mobile."
Additionally, Tencent operates WeChat, China’s most widely used messaging application, which boasts over 1.4 billion monthly active users and includes in-app mini-games.
In the statement, Tencent emphasized that "during the first quarter of 2025, our high-quality revenue streams sustained their solid growth trajectory. AI capabilities already contributed tangibly to our businesses, such as performance advertising and evergreen games."
The company also noted that it had increased its investments in new AI initiatives, such as the Yuanbao application and AI integration within Weixin.
Tencent expressed confidence that the operating leverage from its established, high-quality revenue streams would offset the added costs associated with these AI ventures, supporting its continued financial health during this phase of investment.
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