TENCENT(00700) 格隆汇·2025-05-16 17:40Core Viewpoint - The company reported strong Q1 2025 performance with revenues of 180 billion yuan, exceeding Bloomberg's consensus estimate by 2.45% [1][2]. Group 1: Financial Performance - Q1 2025 revenue reached 180 billion yuan, showing a year-over-year (YoY) increase of 13% and a quarter-over-quarter (QoQ) increase of 4%, surpassing the consensus estimate of 175.7 billion yuan [1]. - Non-GAAP net profit attributable to shareholders for Q1 2025 was 61.3 billion yuan, reflecting a YoY growth of 22% and a QoQ growth of 11%, exceeding the consensus estimate of 59.7 billion yuan by 2.7% [1]. - The gaming business generated 59.5 billion yuan in revenue for Q1 2025, with a YoY increase of 24% and a QoQ increase of 21%, outperforming the consensus estimate of 55.3 billion yuan by 7.7% [1]. Group 2: Segment Performance - Domestic game revenue grew by 24% YoY, reaching 42.9 billion yuan, exceeding the consensus estimate of 40.3 billion yuan by 6.5% [1]. - Overseas game revenue also showed strong performance with a YoY increase of 22%, totaling 16.6 billion yuan, surpassing the consensus estimate of 15.4 billion yuan by 7.9% [1]. - Social network revenue for Q1 2025 was 32.6 billion yuan, reflecting a YoY increase of 7% and a QoQ increase of 9%, slightly above the consensus estimate of 32.2 billion yuan [2]. Group 3: Future Outlook - The company plans to continue investing in AI, which has significantly contributed to the growth of performance advertising and evergreen games [2]. - Revenue projections for 2025 and 2026 are estimated at 734.2 billion yuan and 790 billion yuan, representing YoY growth of 11.2% and 7.6% respectively [2]. - Adjusted net profit forecasts for 2025 and 2026 are 258 billion yuan and 286.2 billion yuan, indicating YoY growth of 15.8% and 10.9% respectively [2].