Tencent’s game profits surge as AI benefits emerge

Chinese technology giant Tencent posted strong third-quarter results, highlighting continued growth in its core gaming business while positioning itself to capitalize on artificial intelligence opportunities.

Financial performance and key metrics: Tencent’s third-quarter results showed significant profit growth and steady revenue increases across multiple business segments.

• Profit attributable to shareholders jumped 47% year-over-year to 53.23 billion yuan ($7.37 billion), exceeding analyst expectations of 46.18 billion yuan
• Overall revenue grew 8% to 167.19 billion yuan, slightly below the forecasted 167.82 billion yuan
• The company’s messaging platform WeChat/Weixin reached 1.38 billion monthly active users, representing 3% growth from the previous year

Gaming division strength: Gaming continues to be Tencent’s primary revenue driver, with impressive growth in both domestic and international markets.

• Domestic gaming revenue increased 14% year-over-year to 37.3 billion yuan
• International gaming revenue grew 11% on a constant currency basis to 14.5 billion yuan
• The company highlighted the “evergreen potential” of both existing and new game titles

Digital advertising momentum: Marketing services emerged as a standout performer, demonstrating strong growth and advertiser demand.

• Marketing services revenue increased 17% year-over-year to 29.99 billion yuan
• Growth was driven by advertiser interest in short-videos, mini programs, and search features within the WeChat ecosystem
• This segment has become one of the fastest-growing revenue streams outside of gaming

AI integration and future outlook: Tencent is actively incorporating artificial intelligence across its business operations to enhance efficiency and create new opportunities.

• The company reported tangible benefits from AI deployment in marketing services and cloud operations
• Management has committed to continued investment in AI technology, tools, and solutions
• These initiatives aim to provide enhanced support for both users and partners

Strategic implications: While Tencent’s core businesses remain strong, the company’s emphasis on AI integration suggests a strategic pivot toward emerging technologies that could reshape its future growth trajectory.