Tencent, a Chinese internet company, recorded double-digit profit and revenue growth across the majority of its business units in Q2 2025, as it continued to invest capital expenditure into AI initiatives.
Chair and CEO Pony Ma stated in its earnings call the company is “striving to bring further benefits of AI to consumers and enterprises through powering more use cases” within WeChat, driving usage of its AI native app and upgrading the capabilities of its foundation models.
Total capex increased 119 per cent year-on-year to CNY19.1 billion ($2.7 billion), driven by increased investments in GPUs and servers to ramp up AI capabilities. R&D spending increased 17 per cent to CNY24.3 billion.
President Martin Lau explained that although it doesn’t have clarity on the chip import situation, it has enough chips for “training and continuous upgrade of our existing models. And we also have many options for inference chips”.
Net profit in the April to June period rose 16 per cent to CNY56 billion, while revenue increased 15 per cent to CNY184.5 billion.
Domestic and international games, part of its value-added services unit, improved 17 per cent and 35 per cent to CNY40.4 billion and CNY18.8 billon, respectively. Social networks revenue increased 7 per cent to CNY32.2 billion.
Marketing services revenue improved 20 per cent to CNY35.8 billion, supported by an upgrade to its advertising foundation model, which it noted led to a better performance of ads. Fintech and business services grew 10 per cent to CNY55.5 billion.
Combined monthly active users of messaging service WeChat and Chinese version Weixin were up 3 per cent to 1.4 billion. MAUs on its QQ mobile messaging platform fell 7 per cent to 532 million.
Source: Mobile World Live
Image Credit: Tencent
