Tencent's Q1 Revenue Exceeds Expectations Amid Gaming Revival

Published 2 hours agoNTES

Tencent's Q1 Revenue Exceeds Expectations Amid Gaming Revival

Tencent Holdings, the leading video game company in China, has reported impressive first-quarter results, showcasing a substantial recovery in its core online gaming sector. The company achieved a total revenue of 180 billion yuan ($24.97 billion) for the quarter, which is a 13% increase year-on-year and outperformed analyst predictions set at 174.6 billion yuan, as reported by Reuters.

The gaming segment saw notable progress, with domestic revenue climbing by 3% to 34.5 billion yuan. This growth was largely fueled by successful games such as 'Fight of the Golden Spatula,' 'CrossFire Mobile,' and 'Arena Breakout,' according to Technode. International gaming revenue also increased by 3% to 13.6 billion yuan, aided by the popularity of games like 'Brawl Stars' and 'PUBG Mobile.' However, net profit for the quarter was slightly below forecasts, reaching 47.8 billion yuan compared to an expected 52.2 billion yuan.

Tencent's strong performance is further backed by its strategic investments in artificial intelligence. This includes significant spending on AI development, utilizing its proprietary models like Hunyuan and T1 to enhance advertising effectiveness. Additionally, the company has raised its marketing services revenue by 22% to 17.7 billion yuan and increased its fintech and business services revenue by 16% to 27.6 billion yuan, demonstrating robust growth across diverse business segments.

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