Tencent fourth-quarter profit surges 90% on gaming and advertising boost

Group 1: Financial Performance - Tencent reported a fourth-quarter revenue of 172.4 billion yuan ($23.9 billion), exceeding the expected 168.9 billion yuan, marking an 11% year-on-year increase [9] - Profit attributable to equity holders was 51.3 billion yuan, surpassing the expected 46.03 billion yuan, reflecting a 90% increase compared to the same period in 2023 [9] Group 2: Gaming Revenue - Domestic games revenue in China rose 23% year-on-year to 33.2 billion yuan in the fourth quarter, attributed to a low base from the previous year and growth in popular games like Honour of Kings and Peacekeeper Elite [2] - International games revenue increased by 15% year-on-year to 16 billion yuan, driven by Tencent's expansion efforts overseas, particularly with games like PUBG Mobile [3] Group 3: AI Developments - Tencent has launched its Hunyuan3D-2.0 model, capable of converting text or images into 3D graphics, and previously introduced Turbo S, an AI model for rapid user query responses [4] - The company's AI initiatives are part of a broader competitive landscape among China's tech giants, with rapid advancements from companies like Alibaba and Baidu [5][6] - Tencent is integrating its AI models, including its in-house chatbot Yuanbao, with technologies from rivals like DeepSeek to enhance products such as WeChat's search features [7]