Tencent reported a 15% increase in second-quarter revenue, reaching 184.504 billion Chinese yuan ($25.7 billion). The strong performance of its gaming unit and AI investments drove growth. Domestic games revenue rose 17% year-on-year to 40.4 billion yuan, while international gaming revenue increased by 35% to 18.8 billion yuan.

AI-driven improvements in the advertising platform and Weixin ecosystem boosted marketing services revenue by 20% to 35.8 billion yuan. Tencent’s capital expenditures surged 119% to 19.1 billion yuan in the second quarter, mainly due to investments in AI upgrades for advertising, gaming, and social media services.

Tencent Music’s unit exceeded expectations with growth in subscription and non-subscription online music revenue. The unit had 124 million music subscribers, showing growth potential. Looking ahead, Tencent Music aims for high-quality growth in subscription revenues, benefiting from the fans economy, concerts, and ad revenue.

Tencent is focusing on selling AI tools to enhance revenue and differentiate from competitors. The company plans to expand its cloud computing capabilities to Europe, competing with Amazon, Microsoft, and Google. Tencent aims to bring more AI benefits to consumers and enterprises by enhancing Weixin, Yuanbao app, and HunYuan foundation models.

Read more at CNBC: Tencent Q2 earnings 2025