Tencent's quarterly growth beats expectations on gaming demand, AI services

Tencent (0700) reported a third-quarter revenue growth of 15 percent on Thursday, as China's largest social media and gaming company benefited from strong gaming demand and expanding AI-driven services.

The Shenzhen-based technology company posted revenue of 192.9 billion yuan (HK$211 billion) for the three months ended September 30. That compared with the 188.9 billion yuan average of analyst estimates compiled by LSEG.

Gaming revenue rose 15 percent to 42.8 billion yuan at home and 43 percent to 20.8 billion yuan overseas. That growth was driven by titles including "Honor of Kings" and "Peacekeeper Elite", as well as newer games such as "Delta Force".

Revenue from advertising rose 21 percent to 36.2 billion yuan, boosted by artificial intelligence that improved targeting capability.

Net profit climbed to 63.1 billion yuan, compared with a 57.3 billion yuan average analyst estimate, LSEG data showed.

Reuters