Tencent Holdings (HKG:0700, OTC:TCEHY) shares moved higher as the Chinese technology firm posted a year-over-year increase in both revenue and profit for the first quarter driven by growth in its gaming business.
Total revenue was up 13% year-over-year at RMB180 billion (US$25.1 billion), above estimates of RMB174.6 billion.
Gaming revenue was up 24% at RMB42.9 billion, as international gaming revenue rose 23% to RMB16.6 billion, supported by popular titles like "Honor of Kings," "Peacekeeper Elite," "Dungeon & Fighter Mobile," and "Delta Force.”
Tencent’s quarterly net profit was RMB47.8 billion (US$6.6 billion), up 14% from the year-ago quarter but falling short of analyst estimates of RMB52.2 billion.
"During the first quarter of 2025, our high-quality revenue streams sustained their solid growth trajectory,” Tencent CEO Ma Huateng said in a statement.
The CEO highlighted that AI capabilities contributed tangibly to Tencent's businesses, including performance advertising and evergreen games, and that the company is increasing investments in AI applications such as the Yuanbao app and AI in Weixin (WeChat).
“We expect these strategic AI investments will create value for users and society, and generate substantial incremental returns for us over the longer term,” Huateng said.
Tencent’s Hong Kong-listed shares added 3% following the release of its earnings report. Its US-listed shares were up 2% at about $67 shortly after US markets opened on Wednesday.