TENCENT(HK:00700) Xin Jing Bao·2025-11-14 04:52Core Viewpoint - Tencent Holdings reported strong financial results for Q3 2025, with revenue of approximately 192.87 billion yuan, a year-on-year increase of 15%, and operating profit of about 63.55 billion yuan, also up 19% [2] Financial Performance - Q3 revenue reached approximately 192.87 billion yuan, a 15% increase year-on-year [2] - Operating profit was around 63.55 billion yuan, reflecting a 19% year-on-year growth [2] - Net profit attributable to equity holders was approximately 63.13 billion yuan, also up 19% year-on-year [2] - Non-IFRS operating profit was about 72.57 billion yuan, with an 18% increase year-on-year [2] - Non-IFRS net profit attributable to equity holders was approximately 70.55 billion yuan, marking an 18% year-on-year growth [2] Capital Expenditure - Capital expenditure for Q3 was approximately 12.98 billion yuan, showing a decrease compared to the same period last year [4] - The management indicated that the expected capital expenditure for 2025 will be lower than previously anticipated but higher than the 2024 level [5] - The reduction in capital expenditure is attributed to changes in AI chip supply rather than a shift in AI strategy [5] AI Investment and Strategy - Tencent emphasized R&D spending for AI, with R&D expenses reaching 22.8 billion yuan, a 28% year-on-year increase [5] - The management expressed confidence in maintaining competitiveness in AI, stating that they do not believe they are falling behind [6] - AI applications are being integrated across Tencent's ecosystem, with expectations for AI assistants in WeChat to enhance user experience [6] Gaming Revenue - International gaming revenue surpassed 20 billion yuan for the first time, reaching 20.8 billion yuan, a 43% year-on-year increase [8] - Domestic gaming revenue was 42.8 billion yuan, reflecting a 15% year-on-year growth [8] - The growth in international gaming revenue is attributed to increased income from Supercell games and new game releases [8] Advertising and Other Revenue - All three main business segments achieved double-digit revenue growth, with value-added services up 16% to 95.86 billion yuan, marketing services up 21% to 36.24 billion yuan, and financial technology and enterprise services up 10% to 58.17 billion yuan [7]