TENCENT(HK:00700) 3 6 Ke·2025-08-13 13:21Core Insights - Tencent Holdings reported a significant increase in both revenue and profit for the second quarter and half-year ending June 30, 2025, with advertising revenue reaching a record high of 67.615 billion RMB in the first half and 35.762 billion RMB in the second quarter, marking a 20% year-on-year growth [2][6] Financial Performance - Total revenue for the first half was 364.526 billion RMB, a 14% increase year-on-year, while the second quarter revenue was 184.504 billion RMB, reflecting a 15% year-on-year growth and a slight 2% quarter-on-quarter increase, maintaining double-digit growth for six consecutive quarters [2][4] - Profit attributable to equity holders for the first half was 103.449 billion RMB, up 16% year-on-year, with the second quarter profit reaching 55.628 billion RMB, a 17% increase year-on-year [4][5] - Non-IFRS basic earnings per share for the first half were 13.667 RMB, a 19% increase year-on-year, indicating profit growth outpacing revenue growth [5][6] User Engagement - The combined monthly active accounts for WeChat and Weixin reached 1.411 billion, a 3% year-on-year increase, while QQ mobile active accounts decreased by 7% to 532 million [5][6] - The number of paid members for value-added services slightly increased by 0.4% to 264 million, with Tencent Video and Tencent Music contributing stable revenue streams [5][6] Business Segments - AI significantly drove growth in advertising and gaming revenues, with value-added services revenue for the first half at 183.501 billion RMB, a 16% year-on-year increase [6][7] - Domestic gaming revenue for the second quarter was 40.4 billion RMB, up 17% year-on-year, while international gaming revenue reached 18.8 billion RMB, a 35% increase year-on-year [6][7] - Tencent's advertising business achieved double-digit growth for the 11th consecutive quarter, with AI-driven improvements leading to a 15%-22% increase in ad click-through rates [6][7] Investment and Costs - R&D expenses rose to 39.161 billion RMB in the first half, a 19% increase year-on-year, accounting for 10.7% of total revenue, primarily for AI model development [7] - Capital expenditures doubled to 46.583 billion RMB, focusing on data centers and AI infrastructure [7] - Employee costs increased, with total staff reaching 111,000, a 5.4% rise year-on-year, and total salary costs at 65 billion RMB, up 19.6% year-on-year [7]