Tencent Holdings Ltd. posted a robust set of second-quarter results, providing fresh momentum for China’s tech sector as the company’s resilience in gaming, social media, and AI underpins its global ambitions.
The Shenzhen-based conglomerate reported a surge in revenue to 184.5 billion yuan ($25.7 billion) for the three months ending June, surpassing analysts’ expectations by 3%. Growth was broad-based, with major segments recording double-digit gains. Notably, Tencent attributed a 20% jump in advertising revenue, which reached 35.8 billion yuan, to its adoption of artificial intelligence-enhanced tools and the flourishing Weixin ecosystem.
Profitability was also strong, as operating income climbed to 63.05 billion yuan, up from 57.31 billion yuan a year earlier. Domestic gaming revenues advanced by 17% year-on-year, totaling 40.4 billion yuan, while international gaming operations saw a stellar 35% leap to 18.8 billion yuan, reflecting Tencent’s expanding footprint beyond its home market.
Tencent is intensifying research and infrastructure outlays in the artificial intelligence arena, with capital expenditures in the second quarter soaring 119% to 19.1 billion yuan. The increased investment aims to sharpen its competitive edge against Chinese rivals such as Alibaba and ByteDance as the industry’s AI race heats up.
The upbeat results sent shares of Prosus NV, a major Tencent stakeholder, higher by as much as 3.9% in European trading, underlining continued investor confidence in the Chinese tech giant’s growth trajectory.
