Tencent posts 13pc rise in revenue for first quarter
Tencent posts 13pc rise in revenue for first quarter
Tencent says its robust first-quarter growth was mainly driven by revenues from its key gaming businesses. Photo: RTHK
Chinese tech giant Tencent on Wednesday reported a 13 percent rise in its revenue in the first quarter, fuelled by accelerated growth in its key gaming business.
Revenue topped 180 billion yuan, beating analysts' forecasts of 174 billion yuan.
Net profit rose 14 percent year on year to 47.8 billion yuan, falling short of analyst expectations of 52.2 billion yuan.
As one of the world's largest gaming companies, the group saw revenues from its hit titles driving overall performance, benefiting from the regulatory easing in the country's gaming industry following the stringent restrictions of previous years.
Domestic gaming revenues rose 24 percent year on year to 42.9 billion yuan – thanks to the performance of "Honor of Kings" and "Peacekepper Elite", as well as that of newer titles such as "DnF Mobile".
Revenue from its global gaming business, meanwhile, totalled 16.6 billion yuan, representing a 23 percent annual increase.
The group, operator of China's largest messaging app WeChat with over 1.4 billion monthly active users, also saw revenue from marketing services jump 20 percent year on year to 31.9 billion yuan, thanks to the "robust demand" from advertisers on WeChat's Mini Program product.
Un a statement, the Shenzhen-headquartered company noted that capital expenditures for the first quarter amounted to 27.5 billion yuan, up 91 percent, as it continues to invest in artificial technology and develops products such as an AI chatbot called Yuanbao.
'AI capabilities already contributed tangibly to our businesses, such as performance advertising and evergreen games,' Tencent said in its earnings release.
"We also stepped up our spending on new AI opportunities, such as the Yuanbao application and AI in Weixin.
'We believe operating leverage from our existing high-quality revenue streams will help absorb the additional costs associated with these AI-related investments and contribute to healthy financial performance during this investment phase," it said.
The company said it expects strategic AI investment will generate considerable returns in the long term.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Asia Times
an hour ago
- Asia Times
Australia's trade would be fatally exposed in a US-China war
If war breaks out between the United States and China someday, one of the major concerns for Australia is the impact on its trade. Our trade routes are long and exposed. Every year, thousands of merchant ships — bulk carriers, tankers, container ships and other types — visit Australian ports to deliver imported goods and pick up exports for delivery at distant ports. When a cargo ship of petroleum leaves the Persian Gulf for refining in East Asia, then sails for Australia, the total trip is approximately 20,000 kilometers. The ship passes through lonely stretches of sea and numerous choke points, such as the Strait of Malacca in Southeast Asia, often within range of missiles and other weapons. Such attacks could come from Chinese ships in the event of a war, or as we've seen in the Middle East with the Houthi rebels, they could also come from militants seeking to disrupt global shipping. Australia's current defense strategy cites the security of our 'sea lines of communication and maritime trade' as a priority. The aim is to prevent an adversary from cutting off critical supplies to our continent in a war. To achieve this, the government has embarked on the lengthy process of expanding the Royal Australian Navy surface and sub-surface fleet, including the acquisition of nuclear-powered submarines. As I explain in my forthcoming book, The Big Fix: Rebuilding Australia's National Security, the problem with the government's maritime plan is that it is built on a deeply flawed foundation and cannot deliver what it promises. Defense documents insist on a need for the Australian Defense Force to be able to project naval power far from Australia's shores in order to protect the nation's trade. The presence of these warships would ostensibly deter attacks on our vital shipping. However, those who developed the maritime plan do not appear to have considered whether the merchant ships delivering this trade would continue to sail to Australia in the event of a war — presumably with China. The reality is that Australia's A$1.2 trillion (US$778 billion) of exports and imports are carried in ships owned by non-Australian companies, flying foreign flags and largely crewed by citizens of other countries. Decisions about whether to continue sailing to Australia during a conflict would be made in overseas boardrooms and capitals. The Australian government has no leverage to force the owners of these ships to continue to service our continent. Australia's national interests may well not be the paramount concern. Nor does the Australian government have the option to turn to Australian-flagged vessels. Australia's shipping list contains only a handful of domestically owned and flagged cargo ships available in case of war. In fact, the biggest vessel (by length) that the government could take into service is the Spirit of Tasmania IV ferry. If all goes according to schedule, at some point in the 2040s, Australia will have at most 26 surface warships and perhaps eight nuclear-powered submarines, the navy hopes to acquire through the AUKUS deal. Australia is expected to acquire three Virginia-class submarines from the US under the AUKUS deal. Photo: Colin Murty / AAP via The Conversation Due to training and maintenance requirements, the total number of vessels available at any one time would be more on the order of ten. In other words, the government's future maritime plan, costing hundreds of billions of dollars, may result in just ten available ships at any given time to protect the nation's trade over thousands of kilometers. Fortunately, Australia has other options for safeguarding its trade that don't necessitate the building of warships. Our first investment in security should be diplomatic. The government should prioritise its investment in diplomacy across the region to promote security, including trade security. Regional countries are best placed to secure the waterways around Australia, particularly from the most likely future threat: Houthi-like militants. The Australian government should also modernize its shipping regulations and include in the budget provisions for war-risk insurance. Such insurance could compensate owners for the potential loss of ships and cargoes as an inducement for them to sail to and from Australia during war. The government must also encourage greater investment in our national resilience. Currently, the biggest risk during a conflict is an interruption to the nation's liquid fuel supply. We must greatly expand our onshore reserves of fossil fuels in the short term, while initiating a nation-building project to electrify the economy in the long term. Electrification would eliminate a considerable vulnerability to national security. Additionally, the government should identify and subsidize vital industries, such as fertilizers and certain medicines, which are essential to the continued functioning of our society in the event of a war. This would reduce our reliance on imports of critical materials. Lastly, Australian industries, with the government's assistance, should further diversify their trading partners to reduce over-dependence on one or two main destinations. Trade is undoubtedly important to Australia and the government is correct to protect it. But it is also true that not all security problems are best answered by the military. This is particularly important since the size of our planned fleet is obviously insufficient for the enormous task it will face. Either Australia invests in impossibly large numbers of warships or it takes a different path. The art of war requires a balance between the desired ends and the means to achieve them. This simple statement underpins the formation of all good strategy, which a state ignores at its peril. Unfortunately, in the case of the nation's maritime plan, the ends and means are seriously out of whack. Instead of setting itself up for failure, the government needs to put aside its ineffectual maritime plan and choose the means that do align with the ends. Only then will it be possible to protect Australia's trade. Albert Palazzo is adjunct professor in the School of Humanities and Social Sciences at UNSW Canberra, UNSW Sydney This article is republished from The Conversation under a Creative Commons license. Read the original article.
HKFP
an hour ago
- HKFP
China ‘firmly rejects' US accusation of violating tariff deal
China said Monday it 'firmly rejects' US claims that it had violated a sweeping tariffs deal, as tensions between the two economic superpowers showed signs of ratcheting back up. Beijing and Washington last month agreed to slash staggeringly high tariffs on each other for 90 days after talks between top officials in Geneva. But top Washington officials last week accused China of violating the deal, with Commerce Secretary Howard Lutnick saying Beijing was 'slow-rolling' the agreement in comments to 'Fox News Sunday'. China hit back Monday, saying Washington 'has made bogus charges and unreasonably accused China of violating the consensus, which is seriously contrary to the facts'. 'China firmly rejects these unreasonable accusations,' its commerce ministry said in a statement. US President Donald Trump said last week that China had 'totally violated' the deal, without providing details. Beijing's commerce ministry said it 'has been firm in safeguarding its rights and interests, and sincere in implementing the consensus'. It fired back that Washington 'has successively introduced a number of discriminatory restrictive measures against China' since the Geneva talks. The ministry cited export controls on artificial intelligence chips, curbs on the sale of chip design software and the revocation of Chinese student visas in the United States. 'We urge the US to meet China halfway, immediately correct its wrongful actions, and jointly uphold the consensus from the Geneva trade talks,' the ministry said. If not, 'China will continue to resolutely take strong measures to uphold its legitimate rights and interests,' it added. Trump-Xi talks? US officials have said they are frustrated by what they see as Chinese foot-dragging on approving export licences for rare earths and other elements needed to make cars and chips. But Washington's Treasury Secretary Scott Bessent looked to ease the pressure on Sunday, saying the two sides could arrange a call between their respective heads of state to resolve their differences. 'I'm confident… this will be ironed out' in a call between Trump and Chinese President Xi Jinping, Bessent said on CBS's 'Face the Nation'. He added, however, that China was 'withholding some of the products that they agreed to release', including rare earths. On when a Trump-Xi call could take place, Bessent said: 'I believe we will see something very soon.' China has been less forthcoming, and the commerce ministry's statement on Monday did not mention any planned conversations between the two leaders. The Geneva deal was 'an important consensus reached by the two sides on the principle of mutual respect and equality, and its results were hard-won', the ministry said. It warned Washington against 'going its own way and continuing to harm China's interests'. Global stocks finished mixed on Friday after Trump made his social media post accusing Beijing. The Hong Kong stock exchange was down around 2 percent shortly after opening on Monday.
RTHK
2 hours ago
- RTHK
More car spaces 'key to easing Yau Tsim Mong woes'
More car spaces 'key to easing Yau Tsim Mong woes' The party says the additional parking spaces can be carved out from land allocated for the Central Kowloon Route project. Photo: RTHK The DAB is proposing that Yau Tsim Mong gets more than 200 additional parking spaces. The suggestion is made in light of the seriousness of illegal parking in the district, which accounts for one third of Hong Kong's parking tickets handed out by the Kowloon West police region last year. According to the Transport and Logistics Bureau in April, the amount collected from those tickets alone came in at more than HK$260 million. The party says that the main solution should be more parking spaces and better management of existing ones. "So our party argues that simply by increasing parking fees may not solve the underlying issue of insufficient supply," said a district council member Benjamin Choi. "The only long-term and constructive solution is to increase the number of parking the worsening traffic congestion problems can then be resolved." The DAB said the government can make use of part of the area allocated to the Central Kowloon Route project to build a smart underground car park as well as add more parking meters in the area. It also suggests greater promotion of available spaces through the app HKeMeter. For instance, there are spaces at West Kowloon Government Offices during non-office hours or around Kowloon Park that the DAB says do not get enough promotion. "We will follow up on our advice and also arrange meetings with government officials to see how we can push forward with our advice," Choi said.
