TENCENT(HK:00700) Guan Cha Zhe Wang·2025-11-14 13:57Core Insights - Tencent Holdings reported a robust performance for the third quarter and nine months ending September 30, 2025, showcasing steady growth with notable highlights [1] Financial Performance - For Q3, the company achieved revenue of 192.87 billion RMB, a year-on-year increase of 15% and a quarter-on-quarter increase of 5% [3][5] - Gross profit reached 108.80 billion RMB, reflecting a year-on-year growth of 22% and a quarter-on-quarter growth of 4% [3][5] - Profit attributable to equity holders was 63.13 billion RMB, up 19% year-on-year and 13% quarter-on-quarter [3][5] - For the nine-month period, total revenue was 557.40 billion RMB, representing a 14% year-on-year increase, while profit attributable to equity holders was 166.58 billion RMB, up 17% [6] Gaming Sector Performance - Domestic game revenue reached 42.80 billion RMB, a 15% year-on-year increase, driven by new titles and established products [6] - International game revenue surged to 20.80 billion RMB, a significant year-on-year growth of 43%, attributed to new acquisitions and the successful launch of "Dying Light: Stay Human" [7] User Metrics - The combined monthly active users of WeChat and WeChat reached 1.414 billion, a 2% year-on-year increase, while QQ mobile monthly active users declined by 8% to 517 million [8][9] AI Strategy and Efficiency - The AI strategy has yielded results in three main areas: technological breakthroughs, improved business efficiency, and ecosystem expansion [10] - The advertising services revenue grew to 36.24 billion RMB, a 21% year-on-year increase, driven by enhanced ad exposure and AI-driven targeting [14][15] Capital Expenditure - The company's capital expenditure for the quarter was 12.98 billion RMB, a decrease of 24% year-on-year and over 32% quarter-on-quarter [12]