Financial Data and Key Metrics Changes - Total revenue for Q3 2025 was CNY 193 billion, up 15% year-on-year [4] - Gross profit increased to CNY 109 billion, reflecting a 22% year-on-year growth [4] - Non-IFRS operating profit rose to CNY 73 billion, an 18% increase year-on-year [4] - Non-IFRS net profit attributable to equity holders was CNY 71 billion, also up 18% year-on-year [5] - Overall gross margin improved to 56%, up 3 percentage points year-on-year [18] Business Line Data and Key Metrics Changes - Value-added services (VAS) revenue was CNY 96 billion, up 16% year-on-year, contributing 50% of total revenue [6] - Social networks revenue increased by 5% year-on-year to CNY 32 billion, driven by video accounts and music subscriptions [7] - Domestic games revenue grew by 15% year-on-year, primarily due to titles like Delta Force and Honor of Kings [7] - International games revenue surged by 43% year-on-year, attributed to upfront revenue recognition from new titles [8] - Marketing services revenue increased by 21% year-on-year to CNY 36 billion, supported by ad spend growth [12] Market Data and Key Metrics Changes - Combined monthly active users (MAU) of Weixin and WeChat reached 1.4 billion, showing growth both year-on-year and quarter-on-quarter [5] - Music subscription revenue increased by 17% year-on-year, with subscribers growing to 126 million [7] - The mobile launch of Valorant resulted in a doubling of combined monthly active users to over 50 million in October [10] Company Strategy and Development Direction - The company is focusing on strategic investments in AI, enhancing capabilities in ad targeting and game engagement [4] - The Hunyuan foundation model is being upgraded, with improvements in imagery and 3D generation models [4] - The company aims to grow Yuanbao adoption and develop agentic AI capabilities within Weixin [4][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the international gaming business, although a deceleration in growth rates is expected [23] - The macroeconomic environment is gradually improving, which could positively impact consumer spending and payment volumes [66] - Management highlighted that AI capabilities are expected to drive future growth in advertising revenue [49] Other Important Information - The company reported a net cash position of CNY 102.4 billion, up 37% quarter-on-quarter [20] - Operating expenses increased, with R&D expenses rising by 28% year-on-year due to AI investments [18] Q&A Session Summary Question: What has driven the growth in international gaming? - The growth was supported by the consolidation of newly acquired studios and upfront revenue recognition from Dying Light: The Beast [23] Question: Can you elaborate on the Hunyuan team upgrades? - The company is hiring top talent and improving the Hunyuan architecture to enhance AI capabilities [30] Question: How does the AI Marketing Plus solution benefit advertisers? - The solution allows advertisers to automate targeting and bidding, leading to superior returns [33] Question: What is the outlook for advertising revenue growth? - The growth is expected to continue, driven by AI capabilities and improving consumer spending [49] Question: How does the company view its relationship with Apple? - The company has a constructive relationship with Apple and is working to enhance the mini game ecosystem [48] Question: What are the trends in consumer loans and cloud revenue? - Consumer loans are stable, and cloud revenue is expected to grow, although AI chip availability may constrain growth [68]

2025 Third Quarter Results Presentation November 13, 2025 1 Cautionary Note This presentation may contain forward-looking statements relating to the forecasts, targets, outlook, estimates of financial performance, opportunities, challenges, business developments, business plans and growth strategies of Tencent Holdings Limited (the "Company" or "Tencent") and its group companies. These forward-looking statements are based on information currently available to Tencent and are stated here on the basis of the ...

Core Insights - Tencent Holdings reported a domestic market game revenue of RMB 42.8 billion for Q3 2025, representing a year-on-year growth of 15% [1] - The international market game revenue reached RMB 20.8 billion, showing a year-on-year increase of 43%, or 42% when calculated at fixed exchange rates [1] Summary by Category Domestic Market Performance - The domestic game revenue for Tencent in Q3 2025 was RMB 42.8 billion, which is a 15% increase compared to the previous year [1] International Market Performance - Tencent's international game revenue for the same period was RMB 20.8 billion, reflecting a significant year-on-year growth of 43% [1] - When adjusted for fixed exchange rates, the growth rate for international revenue stands at 42% [1]

Core Insights - Tencent Holdings reported a revenue of 95.9 billion yuan from its value-added services business in the third quarter, representing a year-on-year growth of 16% [1] Revenue Breakdown - Domestic gaming revenue reached 42.8 billion yuan, showing a year-on-year increase of 15% [1] - International gaming revenue amounted to 20.8 billion yuan, with a significant year-on-year growth of 43% [1] - Social network revenue was recorded at 32.3 billion yuan, reflecting a year-on-year growth of 5% [1]

Core Viewpoint - Tencent Holdings reported a significant increase in revenue and net profit for the third quarter, indicating strong financial performance compared to the previous year [1] Financial Performance - Revenue for the third quarter reached 192.87 billion yuan, up from 167.19 billion yuan in the same period last year, representing a year-on-year growth of approximately 15.5% [1] - Net profit for the third quarter was 63.13 billion yuan, showcasing robust profitability [1]

Core Insights - Tencent reported third-quarter revenue of ¥192.9 billion ($27.08 billion), exceeding expectations due to strong performance in artificial intelligence and gaming [1] - The company's revenue increased by 15% year-on-year, surpassing analyst forecasts, indicating effective monetization of AI and sustained leadership in the gaming sector [1] Financial Performance - Revenue for the third quarter reached ¥192.9 billion ($27.08 billion) [1] - Year-on-year revenue growth was recorded at 15%, indicating robust financial health [1]

Core Insights - Tencent Holdings reported solid revenue and profit growth for Q3 2025, with revenue reaching 192.87 billion yuan, a year-on-year increase of 15% and a quarter-on-quarter increase of 5% [2] - The company attributed its performance to healthy trends in gaming, marketing services, fintech, and enterprise services, alongside strategic investments in AI [2] Financial Performance - For Q3 2025, Tencent's net profit attributable to equity holders was 63.13 billion yuan, up 19% year-on-year and 13% quarter-on-quarter [2] - For the first nine months of 2025, Tencent achieved revenue of 557.40 billion yuan, a 14% year-on-year increase, with net profit attributable to equity holders at 166.58 billion yuan, up 17% [2] User Engagement - As of September 30, 2025, WeChat and WeChat's combined monthly active accounts reached 1.414 billion, a 2% year-on-year increase [3] - QQ's mobile monthly active accounts stood at 517 million, with paid value-added service subscribers at 265 million, reflecting a 0.4% quarter-on-quarter growth [3] Business Segments - Value-added services revenue for Q3 2025 grew 16% year-on-year to 95.90 billion yuan, driven by new game releases and growth in established titles [3] - International gaming revenue surged 43% year-on-year to 20.80 billion yuan, supported by revenue from Supercell games and new PC and console game releases [3] Marketing Services - Marketing services revenue for Q3 2025 increased 21% year-on-year to 36.20 billion yuan, attributed to higher ad exposure and AI-driven ad targeting improvements [4] Fintech and Enterprise Services - Fintech and enterprise services revenue for Q3 2025 rose 10% year-on-year to 58.20 billion yuan, driven by growth in commercial payment activities and demand for AI-related services [4]

Core Insights - Tencent Holdings reported a third-quarter financial performance with a free cash flow of RMB 58.5 billion, indicating strong operational cash generation [1] - The company allocated RMB 20 billion for capital expenditures primarily to support AI-related initiatives, highlighting its focus on technology investment [1] - Other significant expenditures included RMB 4.9 billion for media content payments and RMB 1.9 billion for lease liabilities [1]

Core Insights - Tencent Holdings reported a revenue of 58.2 billion yuan for its financial technology and enterprise services business in Q3 2025, representing a year-on-year growth of 10% [2] Financial Performance - The increase in financial technology service revenue was primarily driven by higher income from commercial payment activities and consumer loan services [2] - Revenue growth in enterprise services was supported by an increase in cloud service income, which was boosted by rising demand for AI-related services from corporate clients [2] - Additionally, the expansion of transaction volume in WeChat Mini Stores contributed to the growth in merchant technology service fees [2]

Core Insights - Tencent Holdings reported a third-quarter revenue of 959 billion yuan for its value-added services business, representing a year-on-year growth of 16% [1] Revenue Breakdown - Domestic gaming revenue reached 428 billion yuan, showing a year-on-year increase of 15%, driven by new game releases such as "Delta Action," growth from established titles like "Honor of Kings" and "Peacekeeper Elite," and the expansion of "Fearless Contract" from PC to mobile [1] - International gaming revenue amounted to 208 billion yuan, with a year-on-year growth of 43% (42% when calculated at constant exchange rates), primarily due to revenue growth from Supercell's games, contributions from recently acquired game studios, and strong sales performance of the newly released PC and console game "Dying Light: The Following" [1]