Tencent FY2025 Q1 Earnings Release

1
May 14, 2025
2025 First Quarter
Results Presentation

This presentation may contain forward -looking statements relating to the forecasts, targets, outlook, estimates of financial performance, opportunities,
challenges, business developments, business plans and growth strategies of Tencent Holdings Limited (the “Company ” or “Tencent ”) and its group
companies .These forward -looking statements are based on information currently available to Tencent and are stated here on the basis of the outlook at
the time that this presentation was produced .The Company undertakes no obligation to publicly update any forward – looking statement, whether written
or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise .The forward -looking statements
are based on certain expectations, assumptions and premises, some of which are subjective or beyond our control .The forward -looking statements may
prove to be incorrect and may not be realised in the future . Underlying the forward -looking statements are a large number of risks and
uncertainties .Therefore you should not rely on any of these forward -looking statements .Please see our various other public disclosure documents for a
detailed discussion of those risks and uncertainties .
This presentation also contains some unaudited non -IFRS financial measures which should be considered in addition to, but not as a substitute for,
measures of the Company’s financial performance prepared in accordance with IFRS .In addition, these non -IFRS financial measures may be defined
differently from similar terms used by other companies . The Company’s management believes that the non -IFRS financial measures provide investors
with useful supplementary information to assess the performance of the Company ’s core operations by excluding certain non -cash items and certain
impact of acquisitions . For further explanation of our non -IFRS measures and reconciliations between our IFRS and non -IFRS results, please refer to our
earnings announcement .
In addition, information relating to other companies and the market in general presented in these materials has been obtained from publicly available
information and other sources .The accuracy and appropriateness of that information has not been verified by Tencent and cannot be guaranteed . All
materials contained within this presentation are protected by copyright law and may not be reproduced, distributed, transmitted, displayed, published or
broadcast without the prior, express written consent of Tencent .
The reporting currency of the company is Renminbi .For the purpose of this presentation, all figures quoted in US dollars are based on the exchange rate
of US $1 to RMB 7.1782 for 1Q2025 .
2
Cautionary Note

3
1. Overview

In billion RMB 1Q2025 1Q2024 YoY 4Q2024 QoQ
Total Revenue 180.0 159.5 +13% 172.4 +4%
Value -added Services 92.1 78.6 +17% 79.0 +17%
Social Networks 32.6 30.5 +7% 29.8 +10%
Domestic Games 1 42.9 34.5 +24% 33.2 +29%
International Games 16.6 13.6 +23% 16.0 +4%
Marketing Services 2 31.9 26.5 +20% 35.0 -9%
FinTech and Business Services 54.9 52.3 +5% 56.1 -2%
Others 1.1 2.1 -45% 2.3 -51%
Gross Profit 100.5 83.9 +20% 90.7 +11%
Non -IFRS
Operating Profit 69.3 58.6 +18% 59.5 +17%
Operating Margin 38.5% 36.8% +1.7ppt 34.5% +4.0ppt
Net Profit Attributable to Equity Holders 61.3 50.3 +22% 55.3 +11%
Financial Highlights
1. Domestic Games refers to our games business in the PRC excluding the Hong Kong Special Administrative Region, the Macao Speci al Administrative Region and Taiwan
2. Starting 3Q24, we have renamed this revenue segment from ‘Online Advertising’ to ‘Marketing Services’ to better represent the breadth of our marketing solutions and accompanying technology
services across our online marketing properties.
4

Weixin & WeChat
• #1 mobile community
• MAU at 1,402m
QQ
• Mobile devices MAU at
534 m
Mobile Payment
• #1 by MAU & DAU
Mobile Browser
• #1 by MAU
Language Input
• #1 by MAU
Key Services Update
Games
Communications
& Social Networks
Utilities
5 1. All rankings above refer to China market, unless otherwise stated . Company data as of Mar 31, 2025
2. IDC Quarterly Public Cloud Services Tracker, 4Q24
3. IDC China Cloud Conferencing Market Share report, 2023
IaaS
• Large scale, high -performance
IaaS network
PaaS
• #2 by revenue 2
SaaS
• #1 standalone cloud
conferencing solution by
revenue 3
China
• #1 by users and revenue
Global
• #1 by revenue
Video
• #1 by paid subscriptions
Music
• #1 by paid subscriptions
Literature
• #1 by users’ paid revenue
FinTech
Cloud
Digital
Content

2. Business Review

+0.1% -3% -2% +0.5% +11% +11% +10% +7% +6% +8% +8% +11% +13%
Revenue
7
22% 21% 21% 20% 21% 20% 19% 18% 19% 19% 18% 17% 18%
24% 24% 22% 19% 23% 21% 21% 18% 22% 21% 22% 20%
24%
8% 8% 9% 10%
9% 9% 9% 9%
8% 9% 9% 9%
9% 13% 14% 15% 17% 14% 17% 16% 19%
17% 19% 18% 20%
18% 32% 32% 32% 33% 32% 32% 34% 35% 33% 31% 32% 33%
30%
1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1% 1%
1%
135.5 134.0 140.1 145.0 150.0 149.2 154.6 155.2 159.5 161.1 167.2 172.4
180.0
1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25
Revenue Growth (YoY %)
Revenue by Segment (billion RMB)

-9% -8% -1% +7% +19% +22% +23% +25% +23% +21% +16% +17% +20%
64% 63% 61% 57% 63% 57% 55% 48% 54% 52% 53% 49%
55%
12% 13% 16% 18%
13% 17% 18% 22%
17% 19% 18% 22%
18%
24% 24% 24% 26%
25% 26%
28% 31%
28% 28% 29% 29%
27%
57.1 57.9
62.0 61.9
68.2 70.8
76.5 77.6
83.9 85.9 88.8 90.7
100.5
1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25
Gross Profit
8
Gross Profit Growth (YoY %)
Gross Profit by Segment (billion RMB)

• Existing businesses continue to generate operating leverage .
This provides us the capacity to “reinvest this leverage” for
the exciting AI opportunity
• Certain GPU / AI investments already generate revenue,
including :
‒ Improved ad targeting, and improved content
recommendation boosting time spent
‒ Increased engagement of evergreen games
‒ Computing infrastructure, APIs and platform solutions
• Other GPU / AI investments are long cycle in nature . Natural
time lag between making investments and generating
substantial incremental return will temporarily result in
smaller gap between revenue and operating profit growth :
‒ GPU depreciation expenses occur ahead of monetisation
for new AI products
‒ Marketing support to build user awareness and promote
adoption of new AI products
‒ Hiring of higher cost technical talent
High Quality Earnings Model to Support AI Investments
Reinvesting into AI
9
28%
16%
-1%
10% 8%
32%
11%
-3%
23%
19%
33%
7%
-6%
34%
24%
FY20 FY21 FY22 FY23 FY24
6% 8% 8% 11% 13%
23% 21%
16% 17% 20%
30% 27%
19% 21% 18%
1Q24 2Q24 3Q24 4Q24 1Q25
Revenue YoY (%) Gross Profit YoY (%) Non-IFRS Operating Profit YoY (%)

Value – added Services
In billion RMB
10
Social Networks
30.5 32.6 29.8 32.6
34.5
42.9
33.2
42.9
13.6
16.6
16.0
16.6 78.6
92.1
79.0
92.1
1Q24 1Q25 4Q24 1Q25
Domestic Games International Games
+17%
YoY
+17%
QoQ
+24%
+7%
+29%
+10%
+23% +4%
Social Networks
• Revenue was up 7% YoY, driven by increased revenue from app -based
games item sales, music subscriptions and Mini Games platform service fees
• Music subscription revenue increased 17 % YoY, supported by 8% YoY
growth in subscribers to 123 million 1, and ARPU improved . TME
strengthened content offerings through deepened collaborations with labels
and artists, and expanded Super VIP membership benefits
• Long -form video subscription revenue was flat YoY . Video subscribers grew
1% YoY to 117 million 2. Our self -commissioned drama series, Guardians of
the Dafeng , ranked #1 industry -wide 3 in 1Q 25
Domestic Games
• Revenue grew 24 % YoY against a low -base quarter, mainly driven by growth
from flagship games, HoK and Peacekeeper Elite , and contributions from
recently released games, DnF Mobile and Delta Force
International Games
• Revenue increased 23 % YoY, or 22 % in constant currency, driven by Brawl
Stars , Clash Royale , and PUBG Mobile
1. The average number of paying users as of the last day of each month during 1Q25
2. The average daily number of paying users for 1Q25
3. Source: Enlightent, by video views across all online platforms in China for 1Q25

Communications & Social Networks
Strengthening content ecosystem in Weixin
• Video Accounts : Streamlined live streaming setup process and enhanced
recommendation algorithms, in order to cultivate and promote more original content . Total
user time spent grew rapidly YoY in 1Q 25
• Mini Shops : Provided more onboarding support for merchants to enrich the range of
branded product listings . GMV continued rapid YoY growth in 1Q 25
• Official Accounts : Enabled users to set up accounts and publish content via mobile
devices, in order to expand creator community and encourage more UGC
Rolling out AI features in Weixin
• Integrated Yuanbao as Weixin contact in April, providing users with seamless AI
interaction within Weixin Chat
• Powered Weixin Search with fast thinking model, HunYuan Turbo S, and Chain of
Thought 1 reasoning models, HunYuan T1 and DeepSeek R1
• Provided AI tools to generate images matching text in Official Accounts articles, and to
generate video effects for Video Accounts videos utilising preset templates
• Reduced Mini Programs development time via AI coding assistant that supports natural
language prompts and image inputs
1. Chain of Thought is an approach in artificial intelligence that simulates human -like reasoning processes by delineating complex tasks into a sequence of logical steps towards a final resolution.
Integrate Yuanbao
as a contact in
Weixin
Summarise
Official Accounts
article
Compare prices
based on product
image
11

Domestic Games
12
1. Source: by gross receipts among mobile games according to Sensor Tower
2. Source: by number of activations in Internet cafés according to Shunwang Technology; League of Legends ranked #1
3. Source: by DAU among mobile games according to QuestMobile
Flagship evergreen games achieved solid growth
• HoK : Gross receipts achieved record high in 1Q 25 , as Year of Snake -themed outfits and targeted
promotion activities expanded paying user base
• Peacekeeper Elite : Expansion of gameplay from battle royale mode to increasingly popular
extraction shooter mode, and Tang Dynasty -themed setting, drove substantial growth in DAU and
gross receipts in 1Q 25
Evergreen games of various vintages performed robustly
• CrossFire Mobile : Gross receipts reached record high and ranked #3 among all mobile games in
China 1 in 1Q 25 , as enhanced rewards system and new PvE mode boosted user engagement and
monetisation
• VALORANT : Gross receipts and average DAU more than doubled YoY in 1Q 25 , benefitting from
new agents and weapon items . Targeted marketing programs helped VALORANT sustain its
position as 2nd most played game in Internet cafés 2
HoK
CrossFire Mobile
New game demonstrating evergreen potential
• Delta Force : DAU consistently increased and exceeded 12 million in April . Ranked #6 by average
DAU 3 in 1Q 25 , highest among all mobile games released in last three years industry -wide
Delta Force

International Games
13
PUBG M obile
• Gross receipts grew by mid teens
% YoY, benefitting from Golden
Moon -themed events and outfits,
and brand collaborations
Call of Duty Mobile
• Gross receipts grew YoY,
benefitting from top -tier outfit and
weapon items
• User retention improved with the
introduction of a new daily
rewards system
Delta Force
• PC version achieved record
concurrent user level 1 on Steam
in May
• Mobile version ranked #2 by
downloads 2 since international
launch on April 21
• Console version to launch in
2H25
1. Source: By global peak concurrent users, Steam DB.
2. Source: By total downloads in international markets, Sensor Tower

Marketing Services
In billion RMB
26.5
31.9
35.0
31.9
1Q24 1Q25 4Q24 1Q25
+20%
YoY
-9%
QoQ
14
Overall
• Revenue grew 20 % YoY, benefitting from higher user engagement, ongoing
AI upgrades to ad platform, and a strengthening transaction ecosystem
within Weixin
• Marketing services revenue from all major advertiser industry categories
increased YoY
• Upgraded ad platform with enhanced LLM and AIGC capabilities : 1)
improved image ad generation and video ad editing ; 2) digital human
solutions to facilitate live streaming activities ; 3) deeper understanding of
merchandise and user interests, enabling better ad recommendations
Weixin
• Video Accounts marketing services revenue grew over 60 % YoY, as
advertisers increasingly utilised our marketing tools to boost content
exposure, promote live streams, and drive sales conversion
• Mini Programs marketing services revenue increased notably YoY, capturing
closed -loop marketing demand from mini dramas and mini games
• Weixin Search revenue grew rapidly YoY, benefitting from increases in
commercial query volume and CTR

FinTech and Business Services
FinTech Services
• Revenue grew by low single -digit % YoY, benefitting from increases in
consumer loan services and wealth management services
• Total commercial payment volume declined slightly YoY in 1Q 25 , but trend
improved in April
• Upgraded financial assistant chatbot in wealth management app, LiCaiTong ,
by integrating LLM capabilities
Business Services
• Revenue returned to teens % YoY growth in 1Q 25 , driven by cloud services
and fees collected on eCommerce transactions . Gross margin increased YoY
due to improved efficiency
• Our audio and video solutions, TDSQL database, and general cloud
infrastructure are increasingly adopted by leading internet platforms seeking
to better manage usage surges and to enhance operational efficiency
• AI -related revenue within Tencent Cloud grew rapidly YoY, driven by
increased demand for GPUs, APIs and platform solutions . Our expanded
model library, better integration of RAG 1 technology, and optimised resource
utilisation enhanced clients’ output accuracy and efficiency
In billion RMB
52.3 54.9 56.1 54.9
1Q24 1Q25 4Q24 1Q25
+5%
YoY
-2%
QoQ
15
1. Retrieval -Augmented Generation (RAG) is a technique that retrieves relevant contextual information from a data source and enh ances large language models by augmenting the model’s base knowledge to
improve the accuracy and reliability of the model’s output.

3. Financial Review

Income Statement
In billion RMB 1Q2025 1Q2024 YoY 4Q2024 QoQ
Revenue 180.0 159.5 +13% 172.4 +4%
COPS (79.5) (75.6) +5% (81.7) -3%
Gross profit 100.5 83.9 +20% 90.7 +11%
Operating expenses (41.5) (32.3) +28% (41.7) -0.4%
Other gains (losses) , net (1.4) 1.0 N/A 2.5 N/A
Operating profit 57.6 52.6 +10% 51.5 +12%
Net gains from investments and others 1.4 0.6 +114% 1.1 +26%
Interest income 3.7 4.2 -12% 3.9 -4%
Finance costs (3.9) (2.8) +37% (2.5) +54%
Share of profit of associates & JV s, net 4.6 2.2 +110% 9.3 -50%
Income tax expense (13.7) (14.1) -3% (11.8) +16%
Net profit 49.7 42.7 +17% 51.5 -3%
Net profit attributable to equity holders 47.8 41.9 +14% 51.3 -7%
Diluted EPS in RMB 5.129 4.386 +17% 5.485 -6%
Non -IFRS
Operating profit 69.3 58.6 +18% 59.5 +17%
Net profit attributable to equity holders 61.3 50.3 +22% 55.3 +11%
Diluted EPS 1in RMB 6.583 5.263 +25% 5.909 +11%
Weighted average number of shares in million 2 9,261 9,484 -2% 9,309 -0.5%
17 1. Diluted EPS is calculated using the weighted average number of outstanding shares in the period incl. the dilutive effect of sha re options and awarded shares as determined under the treasury stock method 2. Weighted average number of shares for calculation of diluted EPS includes the dilutive effect of share options and awarded sh are s as determined under the treasury stock method

Non – IFRS Adjustments
In billion RMB IFRS
1Q20 25 SBC
Net (gain s)/
losses from
investee
companies 1
Amortisation
of intangible
assets
Impairment
provision s/
(reversals) 2 SSV & CPP 3 Tax effects Non -IFRS
1Q2025 YoY change QoQ change
Operating profit 57.6 10.1 – 1.5 – 0.1 – 69.3 +18% +17%
Share of profit of
associates & JVs, net 4.6 1.0 0.1 1.7 0.2 – – 7.6 +39% -1%
Net profit 49.7 11.1 – 3.2 (0.7) 0.2 (0.8) 62.7 +22% +11%
Net profit attributable
to equity holders 47.8 10.8 1.1 2.8 (0.7) 0.2 (0.7) 61.3 +22% +11%
Operating margin 32.0% 38.5% +1.7ppt +4.0ppt
18
Note:
1. Including net (gains)/losses on deemed disposals/disposals of investee companies, fair value changes arising from investee companies, and other expenses in relation to equity transactions of investee
companies.
2. Mainly including impairment provisions/(reversals) for associates, joint ventures, goodwill and other intangible assets ar ising from acquisitions.
3. Mainly including donations and expenses incurred for the Group’s Sustainable Social Value & Common Prosperity Programme initi atives.

36.7 40.6
46.3 44.2 41.7
48.9 52.3 56.8 54.8 55.6 53.0
57.7 55.5
Marketing Services (%)
50.4 50.6 51.7 49.8
53.9 54.0 55.5 53.7
57.3 57.0 57.5 55.9
59.6
Value -added Services (%)
Gross Margins
31.6 33.3 33.3 33.6 34.5 38.4 40.9 43.9 45.6 47.6 47.8 47.1 50.3
1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25
FinTech and Business Services (%)
19
42.1 43.2 44.2 42.6 45.5 47.5 49.5 50.0 52.6 53.3 53.1 52.6
55.8
Overall Gross Margin (%)

9.1
14.7
11.6
14.7
1Q24 1Q25 4Q24 1Q25
S&M
in billion RMB
Operating Expenses
20
R&D
in billion RMB
G&A (excl. R&D) 1
in billion RMB
15.7
18.9 19.8 18.9
1Q24 1Q25 4Q24 1Q25
Non -IFRS Non -IFRS Non -IFRS
7.5 7.9
10.3
7.9
1Q24 1Q25 4Q24 1Q25
+4%
YoY
-24%
QoQ
1Q25 S&M grew by 3% YoY or decreased by 24% QoQ
+21%
YoY
-5%
QoQ
1Q25 R&D grew by 20% YoY or decreased by 2% QoQ 1Q25 G&A (excl. R&D) grew by 11% YoY or decreased by
15% QoQ
+62%
YoY
+28%
QoQ
1. 1Q25 IFRS G&A (excl. R&D) expenses included a one -off share -based compensation expense amounting to RMB4.0 billion arising from restructuring of an existing commercial arrangement at an overseas subsidiary

25.6 25.2
27.3
25.1
30.0
30.9
33.4
31.7
36.8 36.3 36.6
34.5
38.5
1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25
(%)
Non – IFRS Operating Margin
21

In billion RMB 1Q2025 1Q2024 YoY 4Q2024 QoQ
Operating CAPEX 26.4 6.6 +299% 34.9 -24%
Non -operating CAPEX 1.1 7.8 -86% 1.7 -35%
Total CAPEX 27.5 14.4 +91% 36.6 -25%
Operating Cash Flow 76.9 72.3 +6% 54.0 +42%
Less: CAPEX Paid (23.0) (15.2) +52% (39.0) -41%
Payments for media content (5.3) (3.7) +42% (8.5) -38%
Payments for lease liabilities (1.5) (1.5) -0.5% (2.0) -29%
Free Cash Flow 47.1 51.9 -9% 4.5 +954%
Total Cash 476.0 445.2 +7% 415.4 +15%
Less: Total Debt (385.8) (352.7) +9% (338.6) +14%
Net Cash 90.2 92.5 -2% 76.8 +17%
CAPEX, FCF and Cash Position
22
• Repurchased ~43 million shares with an aggregated cost of ~RMB15.8 billion (HKD17.1 billion)
• As at 31 Mar 2025, the f air value of our shareholdings 1 in listed investee companies (excluding subsidiaries) was ~RMB653
billion (USD91 billion) and the carrying book value of our shareholdings in unlisted investee companies (excluding
subsidiaries) was ~RMB338 billion (USD47 billion)
1. Including those held via special purpose vehicles, on an attributable basis.

4. Q&A

Tencent Holdings Limited
2025 First Quarter Results Presentation
Thank you!
https://www.tencent.com/ir