Gaming Empire Still Dominates
The domestic gaming market, which has long been the backbone of Tencent’s business, brought in 40.4 billion CNY – a 17% year-over-year increase. Long-standing hits like Honor of Kings, VALORANT, and Peacekeeper Elite maintained their popularity, while a new title Delta Force also managed to capture the gaming community’s attention. Even stronger growth occurred in international markets, where revenue rose by 35% to 18.8 billion CNY, mainly thanks to global hits like PUBG Mobile and the recently released Dune: Awakening. This confirms that Tencent’s gaming portfolio has not only a solid domestic foundation but also a growing international reach, which is essential for consistent growth.
Advertising and Weixin
Continuing with revenue streams, marketing services generated 35.8 billion CNY, up 20% from last year. This growth ultimately stems from a combination of two factors. The implementation of artificial intelligence into advertising algorithms and the increase in the number of transactions within the Weixin ecosystem. AI enables Tencent to achieve more precise targeting, greater campaign efficiency, and better monetization opportunities.
Music Division and the New Fans Economy
Not least, Tencent Music’s music division reported 124 million subscribers (compared to 123 million in the first quarter). Growth comes not only from subscriptions but also from non-subscription content, such as concerts and fan events. Management plans to expand the so-called fans economy and leverage it, along with growing advertising opportunities, as a new source of revenue.
Record Investments in AI and Cloud
Perhaps the most interesting part of Tencent’s story is unfolding away from the average consumer’s attention – in investments. Capital expenditures reached 19.1 billion CNY, a 119% year-over-year increase. The company is massively investing in AI solutions for advertising, gaming, and the Weixin social network. Part of the strategy also involves expanding cloud services into Europe, where Tencent will compete with giants like Amazon, Microsoft, and Google, who currently control roughly 70% of the market. Tencent is relying on unique AI products, from the Yuanbao app to enhanced HunYuan foundation models, which are designed to increase its differentiation from competitors.
Long-Term Vision
With the development of AI applications, the integration of the gaming ecosystem with cloud and marketing, and a still-strong financial base, Tencent is making it clear that it does not want to be just a “gaming company.” It aims to be a global technology leader shaping the direction of the digital economy. In conclusion, based on the fundamental strength of this company, it is possible for investors to be part of it and share in its potential growth.
Sources:
https://www.cnbc.com/2025/08/13/tencent-q2-earnings-report.html
https://static.www.tencent.com/uploads/2025/05/16/2af4e73edd208df236dadd8b9df89fc4.pdf
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