Tencent (0700) posted its first-quarter adjusted net profit rose 11 percent year-on-year to 67.9 billion yuan (HK$78.3 billion) on robust gaming demand and expanding artificial intelligence-related services, in line with the market expectation.
The Chinese tech giant also recorded a better-than-expected net profit of 58.1 billion yuan for the period, with a growth of 21 percent.
However, its revenue missed market estimates of 199.2 billion yuan, coming in at 196.5 billion yuan, up 9 percent.
In the first quarter, value-added services generated 96.1 billion yuan, rising 4 percent.
Domestic games revenue went up 6 percent to 45.4 billion yuan, with gross receipts growing at a teens percentage rate, driven by games including Honour of Kings, Peacekeeper Elite, Delta Force, and VALORANT MOBILE.
Besides, International games revenue climbed 13 percent to 18.8 billion yuan.
Income from marketing services jumped 20 percent to 38.2 billion yuan, as it upgraded its AI-driven ad recommendation model and expanded closed-loop marketing capabilities within the Weixin ecosystem, and advertising spending saw notable growth from Internet services, eCommerce, and games categories.
FinTech and business services booked a revenue of 59.9 billion yuan, growing 9 percent, among which business services revenue rose by 20 percent, led by increased cloud services. amid higher demand for AI-related services.
However, its capital expenditure climbed 16.2 percent to 31.9 billion yuan. Tencent previously announced plans to increase investment in AI this year, including developing proprietary models.
𝗗𝗼𝘄𝗻𝗹𝗼𝗮𝗱 𝗧𝗵𝗲 𝗦𝘁𝗮𝗻𝗱𝗮𝗿𝗱 𝗔𝗽𝗽 ↓
