Tencent Holdings reported a 15% increase in second-quarter revenue, driven by strong performance in its gaming unit and AI investments. The company’s capital expenditures surged 119% to 19.1 billion yuan, primarily invested in AI upgrades for advertising, gaming, and social media service Weixin.
Gaming revenues rose 17% year-on-year, thanks to the success of new titles like “Delta Force” and “Honor of Kings.” The international gaming business saw a 35% increase, driven by popular games such as “PUBG Mobile” and “Dune: Awakening.”
Tencent’s marketing services revenue also grew 20%, with AI-driven improvements boosting advertising platform sales. The company’s music unit posted better-than-expected results, thanks to growth in subscription and non-subscription online music revenue.
Looking ahead, Tencent expects high-quality growth in subscription revenues from its music business, driven by fan economies, concerts, and ad revenue. The company is also focusing on selling AI tools to boost revenue and differentiate itself from rivals.
CEO Ma Huateng attributed the company’s success to the benefits of utilising AI, stating that it has delivered double-digit revenue and non-IFRS operating profit growth year-on-year. Tencent aims to bring its cloud computing capabilities to Europe, competing with US hyperscalers Amazon, Microsoft, and Alphabet-owned Google.
Source: https://www.cnbc.com/2025/08/13/tencent-q2-earnings-report.html