TENCENT(HK:00700) 美股IPO·2025-11-13 09:22Core Viewpoint - Tencent's third-quarter performance exceeded market expectations, driven by significant growth in revenue and net profit, particularly in its international gaming business [3][5][6]. Financial Performance - Tencent reported third-quarter revenue of RMB 1,928.7 billion, surpassing market estimates of RMB 1,888 billion, with a year-on-year increase of 15% [3][12]. - Net profit reached RMB 631.3 billion, significantly exceeding the forecast of RMB 558.8 billion, reflecting a quarter-on-quarter increase of 13% and a year-on-year increase of 19% [3][5]. - Adjusted net profit was RMB 705.5 billion, also above market expectations of RMB 659.7 billion [6]. Business Segments - The value-added services segment generated revenue of RMB 959 billion, exceeding the market estimate of RMB 933.6 billion, and was the main contributor to revenue growth [7][12]. - Financial technology and enterprise services revenue was RMB 582 billion, in line with market expectations of RMB 581.4 billion [8][12]. - Social network revenue grew by 5% to RMB 323 billion, driven by increases in live streaming services, paid music memberships, and mini-game platform fees [18]. Gaming Performance - International gaming revenue reached RMB 208 billion, significantly above the market estimate of RMB 181.3 billion, with a year-on-year growth of 43% [3][17]. - Domestic gaming revenue was RMB 428 billion, also exceeding the forecast of RMB 422.7 billion, with a year-on-year increase of 15% [3][17]. Research and Development - Tencent's R&D expenditure reached a record high of RMB 228.2 billion, marking a year-on-year increase of 28% [14]. - Capital expenditure was RMB 129.83 billion, with a quarter-on-quarter decline of approximately 32.05% and a year-on-year decline of about 24.06% [14]. Cash Flow - The company reported free cash flow of RMB 585 billion, reflecting a net cash generated from operating activities of RMB 853 billion [16].