Chinese social media, games and video giant Tencent posted revenues of RMB192.9 billion ($27.1 billion) for the third quarter of 2025, marking a 15% year-over-year increase as the company’s strategic AI investments continue to pay dividends across its gaming and advertising businesses.
The internet and technology company reported non-IFRS net profit attributable to equity holders of RMB70.6 billion ($9.9 billion), up 18% year-over-year, according to unaudited results released. Non-IFRS figures exclude certain one-time and non-cash items such as share-based compensation and acquisition-related costs, providing what management considers a clearer view of core operational performance compared to results prepared under International Financial Reporting Standards, the global accounting framework.
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“During the third quarter of 2025, we achieved solid revenue and earnings growth, reflecting healthy trends across games, marketing services, and fintech and business services,” said Ma Huateng, chair and CEO of Tencent. “Our strategic investments in AI are benefitting us in business areas such as ad targeting and game engagement, as well as in efficiency enhancement areas such as coding, and game and video production.”
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Ma highlighted the company’s progress with its HunYuan foundation model, noting that its image and 3D generation capabilities are now industry leading. The company is also focusing on growing adoption of its Yuanbao AI assistant and developing agentic AI capabilities within its Weixin super-app.
Tencent’s gaming division delivered robust performance, with value-added services revenues climbing 16% year-over-year to RMB95.9 billion ($13.5 billion). Domestic games revenues reached RMB42.8 billion ($6 billion), up 15% year-over-year, driven by recently released titles including “Delta Force,” which ranked among the top three games industry-wide by gross receipts during the quarter. The mobile version of “Valorant” has become China’s most successful mobile game launch year-to-date, according to QuestMobile and Sensor Tower data.
International games revenues surged 43% year-over-year to RMB20.8 billion ($2.9 billion), with Supercell’s “Clash Royale” achieving all-time highs for monthly daily active users and gross receipts in September. Newly released title “Dying Light: The Beast” has earned a “very positive” 87% player review score on Steam.
Marketing services revenues jumped 21% year-over-year to RMB36.2 billion ($5.1 billion), benefiting from increased user engagement, higher ad load, and improved eCPMs driven by AI-powered ad targeting. The company introduced its automated ad campaign solution AIM+, which allows advertisers to automate targeting, bidding, placement and ad creation optimization.
FinTech and business services revenues grew 10% year-over-year to RMB58.2 billion ($8.2 billion), with commercial payment volume accelerating compared to the second quarter as both online and offline payment trends improved.
Operating metrics showed the combined monthly active users of Weixin and WeChat reached 1.414 billion as of Sept. 30, up 2% year-over-year. Tencent Video maintained its industry lead with 114 million subscriptions, while Tencent Music held 126 million subscriptions.
On a non-IFRS basis, operating profit increased 18% year-over-year to RMB72.6 billion ($10.2 billion), with operating margin expanding to 38% from 37% in the prior year period. Free cash flow remained flat at RMB58.5 billion ($8.2 billion), while the company’s net cash position totaled RMB102.4 billion ($14.4 billion), up 7% year-over-year.
Tencent repurchased approximately 35.4 million shares on the Hong Kong Stock Exchange during the quarter for aggregate consideration of approximately HKD21.1 billion ($2.7 billion).
