Shenzhen, China – May 15, 2025 — Tencent Holdings, China’s largest technology firm and the world’s leading video game company, reported robust financial results for the first quarter of 2025, with revenue and profit both showing double-digit year-on-year growth. The performance was powered by a strong rebound in its core gaming segment and continued momentum in advertising.
Strong Q1 Performance
Tencent posted first-quarter revenue of CN¥180.02 billion (approximately US$25 billion), surpassing analysts’ consensus estimate of CN¥174.63 billion, according to LSEG. The figure represents a 13% year-on-year increase.
Net profit for the quarter reached CN¥47.8 billion, up 14% from the same period last year, though slightly below the expected CN¥52.2 billion. Operating profit rose 18% to CN¥69.3 billion (US$9.7 billion), while the operating margin improved to 39%, compared to 37% a year earlier. Profit for the period surged 22% to CN¥62.7 billion (US$8.7 billion), and diluted earnings per share came in at CN¥6.583, ahead of the CN¥6.34 forecast.
Gaming Leads the Way
Tencent’s core gaming business delivered a strong performance, highlighting a recovery in player engagement and spending. Domestic gaming revenue surged 24% to CN¥42.9 billion, while international gaming revenue increased 23% to CN¥16.6 billion, supported by new content launches and improved user activity.
Advertising and WeChat Ecosystem Expansion
The company also saw strong growth in its digital advertising business. Marketing services revenue jumped 20% to CN¥31.9 billion, driven by robust advertiser demand across its vast WeChat ecosystem, including video accounts, mini programs, and WeChat search.
WeChat, Tencent’s flagship social platform, now serves over 1.4 billion monthly active users, providing a deep pool of monetization opportunities.
Strategic Investment in AI
Tencent significantly ramped up its capital expenditure, which rose 91% year-on-year to CN¥27.5 billion, as the company accelerated investments in artificial intelligence (AI) infrastructure and development. The move signals Tencent’s long-term strategic pivot toward AI-driven innovation.
“During the first quarter of 2025, our high-quality revenue streams sustained their solid growth trajectory,” said Ma Huateng, Chairman and CEO of Tencent. “AI capabilities already contributed tangibly to businesses, such as performance advertising and evergreen games.”
Ma added that the company’s current operating leverage would help absorb increased AI-related costs and that the investments were expected to generate significant long-term value.
“We expect these strategic AI investments will create value for users and society, and generate substantial incremental returns for us over the longer term,” he said.
Market Reaction
Tencent Holdings (HKEX: 0700) shares rose 3% following the earnings release, trading at HKD$521.0 as of mid-day Wednesday, up from Tuesday’s close of HKD$506.0. The company’s market capitalization currently stands at approximately HKD$4.58 trillion.
Tencent_Seafront_Tower binghai hq Picture on Wikimedia by Charlie fong
