From CNBC: 2025-03-19 04:52:10

Chinese tech giant Tencent reported a strong fourth-quarter performance, beating revenue and profit estimates. Revenue reached 172.4 billion Chinese yuan, with a 11% year-on-year increase, while profit rose 90% to 51.3 billion yuan. Domestic gaming revenue surged 23%, driven by popular titles like Honour of Kings and Peacekeeper Elite.

Tencent’s international gaming revenue also saw a 15% increase, reaching 16 billion yuan. The company has been expanding its reach overseas with games like PUBG Mobile, as the domestic market faces challenges from macroeconomic and regulatory factors. Tencent has also been focusing on becoming a key player in artificial intelligence in China.

Tencent recently launched its Hunyuan3D-2.0 model, capable of transforming text or images into 3D graphics. The company has been investing heavily in AI, with other tech giants like Alibaba and Baidu also making significant advancements in this field. Tencent’s AI push is part of the competitive landscape among China’s tech companies.

Investors are closely watching how Tencent plans to monetize its AI investments. The company’s AI initiatives, including the development of its own models and collaborations with rivals like DeepSeek, reflect the intense competition in the tech industry. Tencent has integrated DeepSeek’s technology into products like its AI chatbot Yuanbao and WeChat’s search features.

Tencent’s AI developments are part of a broader trend in the tech industry, with companies like Alibaba and Baidu also launching new AI models. The competition among China’s tech giants to advance AI capabilities is driving innovation and reshaping the industry. Tencent’s focus on AI reflects its strategic priorities for the future.



Read more at CNBC:: Tencent Q4 2024 earnings report