TENCENT(HK:00700) 2 1 Shi Ji Jing Ji Bao Dao·2025-08-14 01:34Core Viewpoint - Tencent's video subscription numbers have significantly declined, impacting overall performance despite revenue and net profit growth in Q2 2025 [1][4]. Group 1: Financial Performance - Tencent reported a 15% year-on-year revenue increase to 184.5 billion yuan and a 17% rise in net profit to 55.6 billion yuan for Q2 2025 [1]. - The decline in Tencent Video's paid subscriber count reached 3 million, totaling 114 million by the end of Q2 [1]. Group 2: Market Environment - The advertising revenue for Tencent Video faces considerable pressure, with iQIYI's ad revenue dropping by 10.4% to 1.33 billion yuan in Q1 2024, and Mango TV's ad revenue decreasing by 2.7% to 3.438 billion yuan in 2024 [2]. - Short video platforms are increasingly capturing traffic and advertising clients from long video platforms, with short video users in China reaching 1.04 billion and a usage rate of 93.8% as of December 2024 [2]. Group 3: Industry Trends - Tencent Video is adapting to industry changes, with over 20,000 vertical short dramas launched and achieving 3 billion views, indicating a shift towards short-form content [3]. - The company acknowledges the need to accelerate changes in response to the decline in long video viewership, as highlighted by Tencent's Vice President [4].