TENCENT(HK:00700) Nan Fang Du Shi Bao·2025-08-13 15:47Core Insights - Tencent reported Q2 2025 revenue of 184.5 billion RMB, a 15% year-on-year increase, with operating profit (Non-IFRS) rising 18% to 69.25 billion RMB [1][2][3] - The company continues to invest in AI, benefiting from its integration into gaming, advertising, and the To B sector, leading to double-digit percentage growth in both revenue and operating profit [1][4] Revenue Breakdown - The value-added services segment, primarily driven by gaming, generated 91.37 billion RMB, up 16% year-on-year, accounting for 50% of total revenue [3][5] - Marketing services revenue increased by 20% to 35.76 billion RMB, maintaining a 19% share of total revenue [2][3] - The To B segment (financial technology and enterprise services) saw a 10% year-on-year growth to 55.54 billion RMB, representing 30% of total revenue [2][3] AI Integration and Impact - AI has significantly enhanced marketing services, with revenue growth attributed to improvements in the advertising platform and increased demand from advertisers [4] - The gaming segment's revenue growth is also linked to AI, with popular titles like "Honor of Kings" and "PUBG MOBILE" benefiting from AI-driven features [5][6] - Tencent's investment in AI is expected to continue, focusing on enhancing large language models, multi-modal capabilities, and AI programming [8] Future Directions - Tencent plans to improve the performance of its large language models and enhance user experience through AI-driven products [8] - The company is exploring monetization strategies for its AI capabilities while ensuring cost-effectiveness in its investments [8] - Upcoming initiatives include the development of a personalized assistant for WeChat users, leveraging AI technologies [8]