China's Tencent posts strong Q2 revenue growth as AI race heats up
BEIJING : Chinese internet giant Tencent reported a third consecutive quarter of double-digit revenue growth today, beating forecasts, as it began rolling out AI services in its games and messaging app.
Shenzhen-based Tencent is the operator of China's multifunctional app WeChat and a major player in the global gaming industry.
The firm also has a presence in cloud computing, entertainment and AI, with its Yuanbao chatbot one of the most popular AI services in China.
Tencent's revenue in the three months to June 30 was ¥184.5 billion (US$25.7 billion), a filing to the Hong Kong Stock Exchange showed, up 15% compared to the same period last year.
The figure exceeded a Bloomberg estimate of an 11% rise.
Revenue for the first half of 2025 was up 14% year-on-year.
In a breakdown of sales, Tencent said that revenue from domestic games increased 17% year-on-year in the second quarter (Q2), while international games saw a 35% rise.
The firm's net profit for the latest quarter also jumped 17% year-on-year to reach ¥55.6 billion.
'We delivered double-digit revenue and… operating profit growth on a year-on-year basis, as we invested in, and also benefited from, utilising AI,' the firm said in a statement.
Tencent added that it had 'enriched AI features' in its WeChat app, and 'deployed AI tools' in games.
Like fellow domestic tech giants Alibaba and ByteDance, Tencent has been funnelling resources into the competitive field of AI since the release of Chinese company DeepSeek's chatbot in January.
The little-known DeepSeek caused a global stir because it appeared to have developed the chatbot at a fraction of the price of Western industry leaders.
Tencent was among the tech firms caught up in a sweeping domestic crackdown that began in late 2020, when officials called off the massive, planned listing of Alibaba-linked fintech company Ant Group.
Beijing has signalled renewed friendliness towards tech firms in recent months, but broad restrictions on video game access for minors still stand.
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