China’s Tencent Posts 11% Second-Quarter Revenue Rise, Profit Misses Estimates
Tencent’s domestic gaming and AI-driven advertising lifted revenue 11%, while core profit missed estimates and capital spending increased.
- On Wednesday, Tencent Holdings reported an 11% rise in second-quarter revenue to 204.8 billion yuan, driven by strong advertising and gaming sales. Net profit of 56 billion yuan, however, missed analyst expectations of 61.8 billion yuan.
- Domestic gaming revenue grew 17% to 47.3 billion yuan, supported by titles including "Honor of Kings" and "Delta Force." This strong performance helped offset rising costs as Tencent increases capital expenditure to accelerate AI infrastructure development.
- Marketing services revenue climbed 22% to 43.6 billion yuan as AI upgrades boosted advertising within the Weixin ecosystem. The firm released its Hunyuan AI model, Hy3, and began testing an AI assistant inside WeChat in June.
- Tencent stock fell 26% year-to-date at Wednesday's closing bell in Hong Kong, as investors grow concerned about rising spending. The company faces intense competition from rivals Alibaba and ByteDance in China's accelerating AI sector.
- Founder Pony Ma earlier this year likened Tencent's previous AI efforts to a "leaky" ship, signaling an urgent strategic pivot. The firm now prioritizes building an "AI-empowered Tencent" focused on intelligence, applications, and infrastructure.
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Tencent, the Chinese internet giant, has recorded in the second trimester revenues for 204,8 billion yuan (30,3 billion dollars), in increase of 11% on an annual basis and beyond the expectations of the analysts. (ANSA)
Tencent Holdings, a leading Chinese big tech company, recorded double-digit revenue growth in the second quarter of this year, driven by stable growth in its advertising and gaming businesses. However, net profit growth slowed as investments in artificial intelligence (AI) increased. Tencent announced on the 12th that its second-quarter revenue was 204.8 billion yuan (approximately 42.9 trillion won), an 11% increase compared to the same period …
(Shanghai=Yonhap News) Correspondent Cha Byeong-seop = Although China's big tech company Tencent Holdings recorded double-digit revenue growth in the second quarter, investment in the artificial intelligence (AI) sector...
The Amsterdam stock exchange closed with a loss on Wednesday. Tech investor Prosus was a negative outlier following quarterly earnings from Chinese internet giant Tencent, in which the AEX company holds a significant stake. Investors worldwide also reacted to new figures on inflation in the United States.
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