Tencent's 2nd-quarter sales, profit top forecasts as AI gives China's tech giant a leg up
Net profit rose 16 per cent to 56 billion yuan (US$7.81 billion) in the three months that ended in June, according to global accounting standards. Sales increased for the 11th quarter, jumping 15 per cent to 184.5 billion yuan and beating the consensus estimate of 19 analysts in a Bloomberg survey.
The Shenzhen-based company, one of China's largest technology behemoths, was able to grow its sales and profitability because 'we invested in, and also benefited from, utilising AI', Tencent said in its earnings press release on Wednesday.
Shares of the company increased 4.7 per cent amid a rising market in Hong Kong to close at HK$586 before Tencent's results were announced. The stock has gained 40.5 per cent this year.
Tencent Holdings unveiled an open-source AI model on July 27, capable of generating detailed 3D environment. Photo: handout
The company said that its revenues from 'marketing services' increased 20 per cent to 35.8 billion yuan for the second quarter 'primarily due to AI-driven improvements to our advertising platform and enhancements to the Weixin transaction ecosystem.'
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