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Tencent Beats in Q3 as Gaming Surge and AI Ads Lift Revenue 15%

Management signals sustained AI investment after upgrades to its Hunyuan platform.

Overview

  • Revenue rose 15% to 192.9 billion yuan as net profit reached about 63.1 billion yuan, topping analyst estimates.
  • Domestic games grew 15% to 42.8 billion yuan and overseas games jumped 43% to 20.8 billion yuan, aided by new hits like Delta Force and Valorant Mobile and stronger Supercell performance including Clash Royale.
  • Marketing services revenue increased 21% to 36.2 billion yuan on AI-enhanced ad targeting that boosted engagement and eCPMs.
  • Tencent cited AI progress with updates to its Hunyuan model, the Hunyuan Image 3.0 generator achieving leading benchmark placements, and the Yuanbao chatbot reaching 32 million monthly users.
  • Capital expenditure totaled 13 billion yuan in the quarter with AI spending guided to the low-teens percentage of revenue for 2025, alongside chip-supply risk mitigation and plans to expand cloud services in Europe.