: Tencent Posts 13% Revenue Growth in Q1, Boosted by Gaming and AI-Powered Ads

Chinese tech giant Tencent reported a 13% rise in revenue for the first quarter of 2025, reaching 180 billion yuan (around $24.97 billion), beating market estimates of 174.6 billion yuan. The growth was largely driven by strong performances in both its gaming and advertising divisions, with AI playing a key role in enhancing its services.

Tencent’s domestic gaming revenue climbed 24% to 42.9 billion yuan, while international gaming earnings rose by 23% to 16.6 billion yuan. These gains were supported by popular new titles such as “Dungeon & Fighter Mobile,” launched in May 2024, and the shooting game “Delta Force,” released in September. The company also benefited from an improved regulatory climate in China’s gaming industry, which had previously faced restrictions.

Tencent has been aggressively investing in artificial intelligence, dedicating a significant share of its capital spending to AI projects. In 2024’s fourth quarter alone, the company spent 39 billion yuan on AI initiatives. This includes the development of its own large language model, Hunyuan, and the public release of a scaled version called T1. Tencent is also integrating AI into key platforms like WeChat and its AI assistant Yuanbao, and it has adopted third-party models like DeepSeek to enhance functionality.

Advertising revenue surged 22% to 17.7 billion yuan, supported by improvements in ad targeting driven by AI technologies. The company’s FinTech and Business Services segment also posted solid growth, increasing by 16% to 27.6 billion yuan.

Despite these positive trends, Tencent’s net profit stood at 47.8 billion yuan, slightly below analysts’ expectations of 52.2 billion yuan. Nonetheless, Tencent continues to focus on innovation in gaming and AI as it seeks to maintain momentum and navigate the evolving tech landscape.