Q2 2025 Tencent Holdings Ltd Earnings Call Transcript
Key Points
- Tencent Holdings Ltd (TCEHY) reported a 15% year-on-year increase in total revenue for the second quarter of 2025, reaching RMB185 billion.
- The company's gross profit rose by 22% year-on-year to RMB105 billion, indicating strong operational efficiency.
- Non-IFRS operating profit increased by 18% year-on-year to RMB69 billion, showcasing robust financial performance.
- Tencent's domestic games revenue grew by 17% year-on-year, driven by successful titles like Delta Force and evergreen games such as Honor of Kings.
- Marketing services revenue saw a 20% year-on-year growth, benefiting from AI-powered ad tech upgrades and increased transactional activity within Weixin's ecosystem.
- Long-form video subscription revenue decreased by 2% year-on-year, with video subscribers declining by 3% due to fewer top-tier content releases.
- Other losses amounted to RMB3.6 billion, compared to a gain of RMB1.5 billion in the same period last year, primarily due to lower subsidies and tax rebates.
- Finance costs increased by 27% year-on-year, driven by higher interest expenses and foreign exchange losses.
- Non-IFRS share of profit from associates and joint ventures decreased from RMB9.9 billion to RMB6.3 billion year-on-year, reflecting lower estimated associate income.
- Operating CapEx surged by 149% year-on-year to RMB17.9 billion, driven by increased investments in GPUs and servers, which could pressure future cash flows.
Good day and good evening. Thank you for standing by. Welcome to Tencent Holdings Limited 2025 second quarter results announcement webinar. I'm Wendy Huang from Tencent IR team. (Operator Instructions) And please be advised that today's webinar is being recorded.
Before we start the presentation, we would like to remind you that it includes forward-looking statements which are underlined by a number of risks and uncertainties and it may not be realized in the future for various reasons. Information about general market conditions is coming from a variety of sources outside of Tencent.
This presentation also contains some unaudited non-IRS financial measures that should be considered in addition to but not as a substitute for measures of the group's financial performance propelled in accordance with IFRS. For a detailed discussion of risk factors and the IFRS measures, please refer to our disclosure documents on the IR Section of our website.
Now, let me introduce the management team on the webinar tonight. Our
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