Tencent (00700) revenue in the third quarter of 2025 reached 192.9 billion yuan, an increase of 15% compared to the same period last year. Operating profit also increased by 18% year-on-year.

World-leading internet technology company Tencent Limited (00700) today announced unaudited comprehensive performance for the third quarter ended September 30, 2025 ("3Q2025"). Chairman and CEO Ma Huateng said, "In the third quarter of 2025, we achieved solid revenue and profit growth, reflecting healthy trends in our businesses such as gaming, marketing services, financial technology, and enterprise services. Our strategic investment in AI not only benefits our businesses in areas like targeted advertising and gaming user engagement, but also enhances efficiency in fields such as programming, gaming, and video production. We continue to upgrade our team and technology architecture for the Hybrid Basic Model, with our image and 3D generation models at the industry-leading level. As our Hybrid capabilities continue to improve, our efforts in promoting the popularization of Yuans and developing AI intelligence capabilities within WeChat will bring about more positive progress." Financial Highlights for 3Q2025 Total revenue: 15% year-on-year growth, Gross profit: 22% year-on-year growth, Operating profit according to non-international financial reporting standards: 18% year-on-year growth Total revenue was RMB 192.9 billion, a 15% year-on-year increase. Gross profit was RMB 108.8 billion, a 22% year-on-year increase. Operating profit was RMB 72.6 billion, an 18% year-on-year increase; Operating profit margin increased from 37% to 38% compared to the previous year. Net profit for the period was RMB 72.8 billion, a 19% year-on-year increase. Net profit attributable to equity holders of the company was RMB 70.6 billion, an 18% year-on-year increase. Basic earnings per share were RMB 7.769, and diluted earnings per share were RMB 7.575. According to international financial reporting standards: Operating profit was RMB 63.6 billion, a 19% year-on-year increase; Operating profit margin increased from 32% to 33%. Net profit for the period was RMB 64.9 billion, a 20% year-on-year increase. Net profit attributable to equity holders of the company was RMB 63.1 billion, a 19% year-on-year increase. Basic earnings per share were RMB 6.952, and diluted earnings per share were RMB 6.779. Capital expenditure was RMB 13 billion, a 24% year-on-year decrease. Free cash flow was RMB 58.5 billion, flat year-on-year. Total cash was RMB 493.3 billion, a 16% year-on-year increase. Net cash was RMB 102.4 billion, a 7% year-on-year increase. As of September 30, 2025, the fair value of our equity in listed investment companies (excluding subsidiaries) was RMB 800.8 billion, compared to RMB 714.3 billion as of June 30, 2025. As of September 30, 2025, the book value of our equity in unlisted investment companies (excluding subsidiaries) was RMB 345.2 billion, compared to RMB 342.3 billion as of June 30, 2025. In 3Q2025, the company repurchased approximately 35.36 million shares for a total consideration of approximately HKD 2.11 billion on the Hong Kong Stock Exchange. Management Discussion and Analysis for 3Q2025 Value-added services revenue for 3Q2025 increased by 16% year-on-year to RMB 95.9 billion. Domestic gaming revenue was RMB 42.8 billion, a 15% year-on-year increase, primarily driven by the revenue contribution of recent releases such as "Operation Delta" and the growth in revenue of perennial games like "Honor of Kings" and "Peace Elite," as well as the expansion of "Fearless Pact" from PC to mobile platforms. International gaming revenue was RMB 20.8 billion, a 43% year-on-year increase (42% at fixed exchange rates), mainly driven by revenue growth from games under Supercell, the sales performance of new PC and console game "The Light of the Vanished: Beast," and revenue contribution from recently acquired game studios. Social networking revenue increased by 5% year-on-year to RMB 32.3 billion, benefiting from the growth in video streaming service revenue, music subscription revenue, and small game platform service fees. Marketing services revenue for 3Q2025 increased by 21% year-on-year to RMB 36.2 billion. This growth is attributed to increase in ad impressions, benefiting from higher user engagement and ad loading rates, as well as eCPM growth driven by AI-driven ad targeting. Advertiser spending across all major industries increased this quarter. Financial technology and enterprise services revenue for 3Q2025 increased by 10% year-on-year to RMB 58.2 billion. Financial technology service revenue grew by high single-digit percentage year-on-year, mainly due to increased revenue from commercial payment activities and consumer loan services. Enterprise service revenue grew by double-digit percentage year-on-year, driven by revenue growth of cloud services (including the growth driven by increased demand for AI-related services from enterprise customers) and growth in merchant technical service fees driven by an increase in transaction volume through WeChat Mini-Programs. Operating Data 3Q2025 Business Review and Outlook We have systematically built a more vibrant transaction ecosystem for WeChat Mini-Programs, driving sustained rapid growth in transaction volume. For example, we apply basic model capabilities to better understand user interests and enhance product recommendation capabilities. We have enriched WeChat's AI functions to provide users with new services and promote wider use of Yuans, achieving positive results. In terms of domestic games, "Operation Delta" ranked among the top three in industry revenue this quarter, while "Fearless Pact: Source Power Action" became the most successful new mobile game launched in the Chinese market this year. In international games, "Clash Royale" reached record highs in average daily active accounts and revenue in September 2025. The newly launched "The Light of the Vanished: Beast" on the Steam platform received an overall "Very Positive" user rating. Tencent Video maintained its leading position in the long video market with 114 million video members, while Tencent Music also retained its leading position in the music streaming market with 126 million music members. We launched the intelligent delivery product matrix Tencent Advertising AIM+, which supports advertisers in automatic configuration of targeting, bidding, and ad placement, as well as optimizing ad creatives to improve their marketing ROI. Commercial payment volume growth increased from the second quarter, benefiting from strong growth in online payment volume and improvements in offline payment trends, especially in the retail and transportation industries. We have enhanced the complex reasoning capabilities of the Hybrid Big Language Model, particularly in programming, mathematics, and science. According to LMArena's rankings, the Hybrid image generation model ranks first among global language image models.