Post by : Bianca
Haleem
Shenzhen, China – Tencent Holdings Ltd has announced an impressive 15% year-on-year increase in revenue for the third quarter, bolstered by strong gaming sales and enhanced advertising services powered by AI. This outcome strengthens Tencent’s status as the leading force in China's social media and gaming industries.
During the three months ending September 30, the tech giant recorded revenue of 192.9 billion yuan ($27.08 billion), surpassing the analysts’ average forecast of 188.9 billion yuan, based on data from LSEG.
The company’s gaming segment was the main driver, witnessing a 15% rise in domestic revenue to 42.8 billion yuan, thanks to popular titles like Honor of Kings and Peacekeeper Elite. International gaming revenue fared even better, increasing by 43% to 20.8 billion yuan due to successful new releases such as Delta Force, which found favor with global gamers.
Tencent’s advertising sector experienced significant growth, climbing 21% year-on-year to reach 36.2 billion yuan. The firm attributed this surge to enhanced ad targeting abilities through advancements in artificial intelligence, improving both reach and effectiveness on platforms like WeChat and QQ.
The net profit for the quarter rose sharply to 63.1 billion yuan, exceeding the consensus estimate of 57.3 billion yuan, illustrating the resilience of its varied digital ecosystem.
Tencent's recent performance signifies a return to growth following regulatory challenges, with gaming, advertising, and AI-led services being core components of its growth strategy.
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