TENCENT ANNOUNCES 2025 SECOND QUARTER RESULTS

Leave a Comment / Entertainment & Music, PR Newswire / By

Revenue and Non-IFRS Operating Profit Increased Double Digit YoY 
Utilising AI in Games and Marketing Services

HONG KONG, Aug. 13, 2025 /PRNewswire/ — Tencent Holdings Limited (HKEX: 00700 (HKD Counter) and 80700 (RMB Counter), “Tencent” or “the Company”), a world-leading Internet and technology company in China, today announced the unaudited consolidated results for the quarter ended 30 June 2025 (“2Q2025”).

Mr. Ma Huateng, Chairman and CEO of Tencent, said, “During the second quarter of 2025, we delivered double-digit revenue and non-IFRS operating profit growth on a year-on-year basis, as we invested in, and also benefitted from, utilising AI. Our games performed well in terms of users and revenue as evergreen games such as Honour of Kings and Peacekeeper Elite evolve into platforms while increasing their usage of AI, and as new games such as Delta Force broke out. Our marketing services revenue sustained rapid growth as we upgraded our advertising foundation model, leading to better performance of advertisements across our traffic platforms. We are striving to bring further benefits of AI to consumers and enterprises through powering more use cases within Weixin, driving usage of our AI native app Yuanbao, and upgrading the capabilities of our HunYuan foundation models.”

2Q2025 Financial Highlights

Revenues: +15% YoY, gross profit: +22% YoY, non-IFRS[1] operating profit: +18% YoY

  • Total revenues were RMB184.5 billion, up 15% over the second quarter of 2024.
  • Gross profit was RMB105.0 billion, up 22% YoY.
  • On a non-IFRS basis, which is intended to reflect core earnings by excluding certain one-time and/or non-cash items:
    • Operating profit was RMB69.2 billion, up 18% YoY. Operating margin increased to 38% from 36% last year.
    • Net profit was RMB 64.8 billion, up 11% YoY.
    • Net profit attributable to equity holders of the Company for the period was RMB63.1 billion, up 10% YoY. Excluding non-IFRS share of profits of associates and joint ventures in both the current quarter and the same quarter last year, non-IFRS profit attributable to equity holders of the Company would have increased by 20% year-on-year to RMB56.8 billion.
    • Basic earnings per share were RMB6.931. Diluted earnings per share were RMB6.793.
  • On an IFRS basis:
    • Operating profit was RMB60.1 billion, up 18% YoY. Operating margin increased to 33% from 31% last year.
    • Net profit was RMB56.0 billion, up 16% YoY.
    • Net profit attributable to equity holders of the Company for the quarter was RMB55.6 billion, up 17% YoY.
    • Basic earnings per share were RMB6.115. Diluted earnings per share were RMB5.996.
  • Capital expenditure was RMB19.1 billion, up 119% YoY.
  • Total cash was RMB468.4 billion and free cash flow was RMB43.0 billion, up 7% YoY. Net cash position totalled RMB74.6 billion.
  • The fair value of our shareholdings[2] in listed investee companies (excluding subsidiaries) totalled RMB714.3 billion as at 30 June 2025, compared to RMB653.4 billion as at 31 March 2025. The carrying book value of our shareholdings in unlisted investee companies (excluding subsidiaries) was RMB342.3 billion as at 30 Jun 2025, compared to RMB337.9 billion as at 31 March 2025.
  • During the second quarter of 2025, the Company repurchased approximately 38.9 million shares on the Hong Kong Stock Exchange for an aggregate consideration of approximately HKD19.4 billion.
[1] Non-IFRS adjustments excludes share-based compensation, M&A related impact such as net (gains)/losses from investee companies, amortisation of intangible assets, impairment provisions/(reversals), SSV & CPP, income tax effects and others
[2] Including those held via special purpose vehicles, on an attributable basis 

2Q2025 Business Review and Outlook

  • We enriched AI features in Weixin, providing AI-powered citations in content, intelligent responses to customer enquiries for Mini Shops merchants, and automated text summaries for Video Accounts video clips.
  • We deployed AI tools in games to accelerate content production, introduced AI-powered features enabling more realistic virtual teammates and non-player characters, used AI-powered marketing activities to increase user acquisition and engagement, contributing to the popularity and revenue growth of our Domestic and International Games.
  • We upgraded Mini Games‘ technology infrastructure with expanded game engine compatibility, enhanced graphics rendering, and reduced load time, which facilitated developers in porting complex app-based games to Mini Games. Total gross receipts of Mini Games increased 20% year-on-year in the second quarter of 2025.
  • Domestically, Delta Force, a first-person shooter that we released on mobile and PC in September 2024, exceeded 20 million monthly average DAU, ranking it among the top 5 games by DAU, and the top 3 games by gross receipts, industry-wide in July 2025[3].
  • Internationally, Supercell released more frequent content updates, optimised the reward system and hosted more community events for Clash Royale, boosting the game’s DAU, and lifting its monthly gross receipts to a seven-year high in June 2025.
  • We expanded AI capabilities in advertisement creation, placement, recommendation and performance analysis, enhancing advertising click-through rates and conversions, returns on investment for advertisers, and growing marketing services revenue on our platforms.
  • Tencent Video maintained its leading position in China’s long-form video market with 114 million[4] video subscribers. Tencent Music sustained its leading position in the music streaming market with 124 million[5] music subscribers.
  • Benefitting from improved consumption activity, commercial payment volume growth turned positive year-on-year in the second quarter of 2025, contributing to higher revenue growth for FinTech Services.
  • For HunYuan, we enhanced our data quality and diversity through data augmentation and synthesis, and implemented more effective pre-training and post-training scaling, bolstering the model’s foundational capabilities. Our HunYuan 3D model ranked first[6] on Hugging Face for its industry-leading geometric precision, texture fidelity and prompt-3D alignment capabilities. Game developers, 3D printing enterprises, and design professionals are increasingly adopting HunYuan 3D model to generate digital assets.
[3] Company data, QuestMobile, Sensor Tower
[4] The average daily number of paying users for the second quarter of 2025
[5] The average number of paying users as of the last day of each month during the second quarter of 2025
[6] Published on https://huggingface.co/spaces/3DTopia/3DGen-Leaderboard, August 2025

Operating Metrics 

As at30 June2025As at30 June2024Year-on-yearchangeAs at31 March2025Quarter-
on-quarterchange
(in millions, unless specified)
Combined MAU of Weixin                 and WeChat1,4111,3713 %1,4020.6 %
Mobile device MAU of QQ                                     532571-7 %534-0.4 %
Fee-based VAS paying  users2642630.4 %268-1 %

2Q2025 Management Discussion and Analysis

Revenues from VAS increased by 16% year-on-year to RMB91.4 billion for the second quarter of 2025. Domestic Games revenues were RMB40.4 billion, up 17% year-on-year, driven by the contribution from recently released Delta Force and growth in revenues from evergreen games including Honour of Kings, VALORANT, and Peacekeeper Elite. International Games revenues were RMB18.8 billion, reflecting a 35% year-on-year increase, driven by growth in revenues from Supercell’s games and PUBG MOBILE, as well as the contribution from newly released Dune: Awakening. Social Networks revenues rose by 6% year-on-year to RMB32.2 billion, driven by growth in app-based game virtual item sales, Video Accounts live streaming revenue and music subscription revenue.

Revenues from Marketing Services[7] were RMB35.8 billion for the second quarter of 2025, up 20% year-on-year. This growth was primarily due to AI-driven improvements to our advertising platform and enhancements to the Weixin transaction ecosystem, which resulted in robust advertiser demand across Video Accounts, Mini Programs and Weixin Search. Marketing Services revenues increased across most major industry categories during the quarter.

Revenues from FinTech and Business Services rose by 10% year-on-year to RMB55.5 billion for the second quarter of 2025. FinTech Services revenue growth was driven by higher revenues from consumer loan services, commercial payment activities and wealth management services. Increased enterprise customer demand for AI-related services, including GPU rental and API token usage, along with increased eCommerce technology service fees, resulted in Business Services revenue growth accelerating versus prior quarters.

For other detailed disclosure, please refer to our website https://www.tencent.com/en-us/investors.htmlhttp://www.tencent.com/ir, or follow us via Weixin Official Account (Weixin ID: TencentGlobal).

[7] Starting third quarter of 2024, we have renamed this revenue segment from “Online Advertising” to “Marketing Services” to better represent the breadth of our marketing solutions and accompanying technology services across our online marketing properties

Leave a Comment

Your email address will not be published. Required fields are marked *