Tencent Reports 90% Q4 Profit Surge, Driven by Gaming and AI Initiatives
The Chinese tech giant exceeded expectations with strong gaming performance, AI-powered advertising enhancements, and increased shareholder returns for 2025.
- Tencent's Q4 2024 profit rose 90% year-on-year to 51.3 billion yuan, surpassing analyst expectations, with revenue growing 11% to 172.4 billion yuan.
- Domestic gaming revenue increased 23% year-on-year to 33.2 billion yuan, driven by hit titles like Honour of Kings and Peacekeeper Elite, while international gaming revenue grew 15%.
- AI investments, including models like Hunyuan3D-2.0 and Turbo S, contributed to enhanced advertising performance and product innovation, with Tencent reorganizing AI teams and ramping up spending.
- The company plans to increase its annual dividend by 32% and repurchase at least HKD 80 billion worth of shares in 2025, reflecting confidence in its financial outlook.
- Despite strong financial results, Tencent faces geopolitical challenges, including being added to a U.S. list of firms allegedly linked to Beijing's military.
Forbes 
CNBC 
South China Morning Post 
Benzinga 
