Tencent Holdings, the largest Chinese technology company in terms of market capitalization, has recorded a 13 % increase in revenues in the first quarter. According to the report, this was influenced by the development of the game and advertising industry supported by artificial intelligence.
TENCENT, the world's largest video games and the Wechat message operator, recorded revenues of 180 billion yuan ($ 24.97 billion) for a quarter completed on March 31.
These results exceeded the average forecast of LSEG analysts, of 174.6 billion of yuan. According to LSEG data, net profit for a quarter was 47.8 billion of yuan, while analysts expected 52.2 billion yuan.
A successful period for games
As Reuters indicates, the good situation in the game segment had the greatest impact on the increase in revenues. The company benefited from alleviating the regulations in the Chinese game sector after strict restrictions in force in previous years.
In this quarter, revenues from games on the domestic market increased by 24 percent. up to 42.9 billion yuan, and revenues from games on the international market increased by 23 percent. up to 16.6 billion yuan. Among the titles that contributed to the height were “Dungeon & Fighter Mobile”, released in May 2024, and the “Delta Force” shooter, which debuted in September.
Tencent Holdings is the largest Chinese technology company in terms of market capitalization.Mamun_sheikh / shutterstock
Plans for the development of artificial intelligence
Tencent has increased investments in artificial intelligence and in March informed that it would allocate a low, two -digit percentage of revenues from 2025 to capital expenditure, mainly on the development of artificial intelligence. In the fourth quarter of 2024, the company allocated 39 billion yuan for the development of AI.
The company has developed its own reserved large model of generative artificial intelligence called Hunyuan, and in March it made the version called T1.
As Reuters notes, the company is also one of the most open companies to receive the technology of other companies.
Tencent has become the first large Chinese technology company that integrated Deepseek technology. AI Chinese startup, which gained publicity at the beginning of this year thanks to the release of AI models, which compete with western counterparts at lower development costs.
Deepseek integration has been implemented in the main Tencent products, including Wechat – a flagship messenger and company payment system with over 1 billion active users – and Yuanbao, own AI TENCENT assistant.
Profit in business and marketing services
Revenues from marketing services in this quarter amounted to 17.7 billion, which means an increase of 22 percent. Year on year, partly due to solid improvements of advertising technologies based on artificial intelligence, the benefits of which include more targeted advertising.
The fintech segment and business services of the company, which includes consumer loans, property management and cloud services, recorded revenues of 27.6 billion of yuan, which means an increase of 16 percent.
Source of the main photo: Mamun_sheikh / shutterstock