Core Viewpoint - Tencent has achieved double-digit growth in both revenue and gross profit in Q1, with a revenue of 1800.2 billion yuan, a 13% year-on-year increase, and a gross profit of 1004.9 billion yuan, a 20% year-on-year increase, indicating strong performance across its core businesses, particularly in AI and gaming [3][4][10]. Group 1: Financial Performance - Tencent's operating profit (Non-IFRS) reached 693 billion yuan, marking an 18% year-on-year increase, continuing a trend of gross profit and operating profit growth outpacing revenue growth for ten consecutive quarters [3]. - The gaming business in the domestic market grew by 24% year-on-year, driven by revenue increases from popular games such as "Honor of Kings" and "Peacekeeper Elite" [3][4]. - International gaming revenue also saw a 23% year-on-year increase, attributed to the success of titles like "Brawl Stars" and "PUBG MOBILE" [3]. Group 2: AI Contributions - CEO Ma Huateng stated that AI capabilities have made substantial contributions to performance advertising and evergreen games, with AI enhancing ad click-through rates significantly [5][8]. - AI has been integrated into Tencent's advertising technology platform, improving image generation and video editing, and enhancing user interest understanding for better ad targeting [8][10]. - AI is also being utilized in Tencent's gaming sector, particularly in enhancing player experiences in long-standing games by providing intelligent AI companions [9]. Group 3: Marketing Services - Marketing services revenue grew by 20% year-on-year to 319 billion yuan, with strong demand from advertisers for video accounts, mini-programs, and WeChat search ads [4]. - The advertising revenue from video accounts is estimated to exceed 8 billion yuan, showing a growth of over 50% year-on-year, indicating untapped advertising potential [13]. Group 4: E-commerce Developments - Tencent is rapidly adjusting its WeChat e-commerce strategy, with numerous new features and organizational changes aimed at enhancing the e-commerce ecosystem [12]. - The establishment of an e-commerce product department within WeChat signifies a strategic focus on developing transaction models and supporting merchants [12]. - As WeChat e-commerce scales, it is expected to generate new revenue streams and stimulate growth in Tencent's advertising and enterprise services [14].
降本增效许久的腾讯,正为AI豪掷千金