Tencent Beats Q2 Revenue With 204.78 Billion Yuan as Capex Jumps 65%
Updated
Updated · CNBC · Aug 12
Tencent Beats Q2 Revenue With 204.78 Billion Yuan as Capex Jumps 65%
3 articles · Updated · CNBC · Aug 12
Summary
204.78 billion yuan in second-quarter revenue topped LSEG's 202.17 billion yuan estimate, while net profit of 56 billion yuan missed the 61.82 billion yuan consensus.
17% growth in domestic games to 47.3 billion yuan and a 22% rise in marketing services to 43.6 billion yuan drove the beat, helped by AI ad recommendations and stronger titles including Delta Force and Valorant.
52.8 billion yuan of capital expenditure in the June quarter—up 65% from the prior quarter—reflected heavier spending on computing infrastructure to turn AI model and app usage into future revenue.
Tencent said it has begun a small-scale prototype test of Xiaowei inside WeChat, adding to last month's global expansion of its Hy3 model as competition intensifies from Alibaba, DeepSeek and Moonshot AI.
The results arrive with Tencent shares down 26% year to date in Hong Kong, underscoring investor concern over rising AI spending even as the company tries to prove those investments are lifting growth.