Tencent FY2025 Q2 Earnings Release

1
August 13, 2025
2025 Second 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 RMB7.1586 for 2Q2025.
2
Cautionary Note

3
1. Overview

QoQ 1Q2025 YoY 2Q2024 2Q2025 In billion RMB
+2% 180.0 +15% 161.1 184.5 Total Revenue
-0.8% 92.1 +16% 78.8 91.4 Value-added Services
-1% 32.6 +6% 30.3 32.2 Social Networks
-6% 42.9 +17% 34.6 40.4 Domestic Games
1
+13% 16.6 +35% 13.9 18.8 International Games
+12% 31.9 +20% 29.9 35.8 Marketing Services
2
+1% 54.9 +10% 50.4 55.5 FinTech and Business Services
+63% 1.1 -7% 2.0 1.8 Others
+4% 100.5 +22% 85.9 105.0 Gross Profit
Non-IFRS
-0.1% 69.3 +18% 58.4 69.2 Operating Profit
-1.0ppt 38.5% +1.2ppt 36.3% 37.5% Operating Margin
+3% 61.3 +10% 57.3 63.1 Net Profit Attributable to Equity Holders
Financial Highlights
1. Domestic Games refers to our games business in the PRC excluding the Hong Kong Special Administrative Region, the Macao Special 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 1,411m
QQ
•
Mobile devices MAU at
532m
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 Jun 30, 2025
2. IDC Quarterly Public Cloud Services Tracker, 1Q25
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

无法显示该图片。
2. Business Review

+15% +13% +11% +8% +8% +6% +7% +10% +11% +11% +0.5% -2% -3%
Revenue
7
21%
21%
20%
21%
20% 19%
18%
19% 19% 18%
17%
18% 18%
24%
22%
19%
23%
21%
21%
18%
22% 21%
22%
20%
24%
22%
8%
9%
10%
9%
9%
9%
9%
8% 9%
9%
9%
9%
10%
14%
15%
17%
14%
17%
16%
19%
17%
19%
18%
20%
18%
19%
32%
32%
33%
32%
32%
34%
35%
33%
31%
32%
33%
30%
30%
1%
1%
1%
1%
1%
1% 1%
1%
1%
1%
1%
1%
1%
134.0
140.1
145.0
150.0
149.2
154.6
155.2
159.5
161.1
167.2
172.4
180.0
184.5
2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25
Revenue Growth (YoY %)
Revenue by Segment (billion RMB)

+22% +20% +17% +16% +21% +23% +25% +23% +22% +19% +7% -1% -8%
63%
61%
57%
63%
57%
55%
48%
54% 52%
53%
49%
55%
53%
13%
16%
18%
13%
17%
18%
22%
17%
19%
18%
22%
18%
20%
24%
24%
26%
25%
26%
28%
31%
28%
28%
29%
29%
27%
28%
57.9
62.0
61.9
68.2
70.8
76.5
77.6
83.9
85.9
88.8
90.7
100.5
105.0
2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25
Gross Profit
8
Gross Profit Growth (YoY %)
Gross Profit by Segment (billion RMB)

Value-added Services
In billion RMB
9
Social Networks
30.3
32.2
32.6
32.2
34.6
40.4
42.9
40.4
13.9
18.8
16.6
18.8
78.8
91.4
92.1
91.4
2Q24 2Q25 1Q25 2Q25
Domestic Games International Games
+16%
YoY
-0.8%
QoQ
+17%
+6%
-6%
-1%
+35%
+13%
Social Networks
•
Revenue was up 6% YoY, driven by increased revenue from app-based
games item sales, Video Accounts live streaming service and music
subscriptions
•
Music subscription revenue increased 17% YoY, supported by growth in
ARPU and subscribers. Music subscribers grew 6% YoY to 124 million
1
.
TME enriched content offerings by deepening cooperation with Asian
labels. Super VIP membership subscribers exceeded 15 million,
benefitting from privileges such as collectible artist cards and expanded
early access to merchandise and live events
•
Long-form video subscription revenue decreased 2% YoY. Video
subscribers declined 3% YoY to 114 million
2
due to fewer scheduled
releases of top-tier content. Our self-commissioned drama series, The
Prisoner of Beauty , ranked #1 industry-wide
3
in May
Domestic Games
•
Revenue grew 17% YoY, driven by contribution from recently released
game Delta Force , and growth from evergreen games HoK , VALORANT
and Peacekeeper Elite
International Games
•
Revenue increased 35% YoY, or 33% in constant currency, driven by
Supercell’s games, PUBG Mobile and release of Dune: Awakening
1. The average number of paying users as of the last day of each month during 2Q25
2. The average daily number of paying users for 2Q25
3. Source: Enlightent, by video views across all online platforms in China for May 2025

Communications & Social Networks
Mini Programs
•
GMV facilitated by Mini Programs grew by teens % YoY in
2Q25, benefitting from improved support for use cases
especially in financial services, dine-in ordering and
transportation
•
Mini Games total gross receipts increased 20% YoY in 2Q25.
Upgraded technology infrastructure with expanded game
engine compatibility, enhanced graphics rendering and reduced
load time, which facilitated developers in porting complex app-
based games to Mini Games
•
Allowed brands and merchants to port SKU library from Mini
Programs to Mini Shops and unify loyalty programs across two
platforms
•
Extended gifting feature from Mini Shops to Mini Programs ,
Video Accounts and Official Accounts
•
Introduced “shop with friends” feature, encouraging users to
share products and shops with friends via chats and Moments,
and participate in deals for group discounts
Mini Shops
AI feature updates in Weixin
•
Added AI-powered citation to content, enabling users to activate contextual AI commentary on related information when reading Official
Accounts articles or Video Accounts comments
•
Upgraded Mini Shops customer service with LLM capabilities, to provide more intelligent responses to customer inquiries and personalised
product recommendations
•
Enabled Yuanbao , as a Weixin contact, to interpret and summarise Video Accounts content
10

Domestic Games
11
•
Average DAU grew over 30%
YoY in 2Q25, driven largely by
the rising popularity of extraction
shooter mode
Peacekeeper Elite Delta Force
•
Leveraging the game’s advanced architecture
and modular design, we added new features
such as underwater combat and dynamic
weather system, enabling monthly average
DAU to exceed 20 million in July
•
Ranked among top 5 games industry-wide by
DAU, and ranked among top 3 games industry-
wide by gross receipts, in China in July
1
11
•
Average DAU achieved record
high in 2Q25, benefitting from
eSports tournament, and new
larger scale map Corrode
•
VALORANT MOBILE will launch
on Aug 19
VALORANT
1. Source: Company data, QuestMobile, Sensor Tower
2. Non-player characters
•
AI enriches PvP and PvE games by accelerating content production speed and scale
•
AI enables virtual teammates in PvP games and more realistic NPCs
2
in PvE games to provide more human-like interactions
•
AI enhances marketing for player acquisition and engagement
AI contributing to games’ revenue growth

International Games
12
PUBG Mobile
•
Players increasingly participating in UGC-powered World of Wonder
sandbox
•
Monthly gross receipts achieved record high in April on appealing ancient
Egyptian-themed outfits
1. Source: Steam, for the period from 5 June to 10 June
Clash Royale
•
Released more frequent content updates, optimised the reward system and
hosted more community events, resulting in more attention from live
streaming influencers and higher DAU
•
Monthly gross receipts hit 7-year high in June
Dune:
Awakening
•
Open world survival game based on iconic sci-fi IP
，
developed and
published by subsidiary Funcom
•
Launched in June – received positive response from fans of survival genre
and fans of Dune IP, ranked first pay-to-own game by revenue on Steam
worldwide during launch period
1

Marketing Services
In billion RMB
29.9
35.8
31.9
35.8
2Q24 2Q25 1Q25 2Q25
+20%
YoY
+12%
QoQ
13
Overall
•
Revenue grew 20% YoY, benefitting from AI-powered adtech upgrades, and
more closed-loop advertising activity
•
We expanded AI capabilities in ad creation, placement, recommendation and
performance analysis, enhancing CTRs, conversions and ROI for advertisers,
and growing revenue on our platforms
•
In particular, we upgraded ad platform by deploying scaled-up foundation
model
Weixin
•
Video Accounts marketing services revenue rose ~50% YoY. As more
transactions occur within Weixin, merchants and service providers
increasingly use marketing solutions to drive traffic to their live streaming and
mini shops
•
Mini Programs marketing services revenue increased ~50% YoY, as our
closed-loop marketing solutions offered attractive ROIs for mini games and
mini dramas
•
Weixin Search marketing services revenue grew ~60% YoY, due to more
consumer and advertiser interest in Mini Programs search results, and
enhanced ad relevance as we leveraged LLMs to deepen understanding of
merchandise and user consumption intent

FinTech and Business Services
FinTech Services
•
Revenue growth increased to high single-digit % YoY, primarily driven by
commercial payment services and consumer loan services
•
Growth in commercial payment volume turned positive YoY, as decline in
value per transaction narrowed and number of transactions grew faster YoY.
Online TPV continued to grow at healthy rate, while previously weak offline
TPV trend improved due to more spending in categories such as retail and
dining services
Business Services
•
Revenue grew at teens % YoY, driven by cloud services (including GPUs and
API tokens for AI) and fees collected on Mini Shops eCommerce transactions.
Gross margin increased YoY due to improved efficiency
•
Tencent Cloud increased international revenue significantly YoY. Our cloud
migration technology and database tooling capabilities facilitated large
enterprises to migrate to Tencent Cloud and enhance IT efficiency
•
Enhanced HunYuan LLM data quality through data augmentation and
synthesis, and implemented more effective pre-training and post-training
scaling. HunYuan 3D model is top-ranked 3D generative model on Hugging
Face; game developers, 3D printing enterprises, design professionals
increasingly use HunYuan 3D model for digital asset generation
In billion RMB
50.4
55.5
54.9
55.5
2Q24 2Q25 1Q25 2Q25
+10%
YoY
+1%
QoQ
14

无法显示该图片。
3. Financial Review

Income Statement
QoQ
1Q2025
YoY 2Q2024
2Q2025 In billion RMB
+2% 180.0 +15% 161.1 184.5
Revenue
stable (79.5) +6% (75.2) (79.5)
COPS
4% 100.5 +22% 85.9 105.0
Gross profit
-0.5% (41.5) +13% (36.7) (41.3)
Operating expenses
+156% (1.4) N/A 1.5 (3.6)
Other gains (losses), net
+4% 57.6 +18% 50.7 60.1
Operating profit
+87% 1.4 N/A (0.7) 2.6
Net gains (losses) from investments and others
+10% 3.7 +7% 3.9 4.1
Interest income
+2% (3.9) +27% (3.1) (3.9)
Finance costs
-2% 4.6 -42% 7.7 4.5
Share of profit of associates & JVs, net
-17% (13.7) +12% (10.1) (11.4)
Income tax expense
+13% 49.7 +16% 48.4 56.0
Net profit
+16% 47.8 +17% 47.6 55.6
Net profit attributable to equity holders
+17% 5.129 +20% 4.994 5.996
Diluted EPS in RMB
Non-IFRS
-0.1% 69.3 +18% 58.4 69.2
Operating profit
+3% 61.3 +10% 57.3 63.1
Net profit attributable to equity holders
+3% 6.583 +13% 6.014 6.793
Diluted EPS
1
in RMB
-0.2% 9,261 -2% 9,445 9,247
Weighted average number of shares in million
2
16
1. Diluted EPS is calculated using the weighted average number of outstanding shares in the period incl. the dilutive effect of share options and awarded shares as determined under the treasury stock method
2. W eighted average number of shares for calculation of diluted EPS includes the dilutive effect of share options and awarded shares as determined under the treasury stock method

Non-IFRS Adjustments
QoQ change YoY change
Non-IFRS
2Q2025
Tax effects SSV & CPP
3
Impairment
provisions/
(reversals)
2
Amortisation
of intangible
assets
Net (gains)/
losses from
investee
companies
1
SBC
IFRS
2Q2025
In billion RMB
-0.1% +18% 69.2
– 0.2 – 1.5 – 7.4 60.1
Operating profit
-17% -36% 6.3
– – 0.2 1.5 (0.8) 0.9 4.5
Share of profit of
associates & JVs, net
+3% +11% 64.8
(0.7) 0.8 (0.4) 3.2 (2.4) 8.3 56.0
Net profit
+3% +10% 63.1
(0.6) 0.8 (0.4) 2.8 (3.2) 8.1 55.6
Net profit attributable
to equity holders
-1.0ppt +1.2ppt 37.5% 32.6%
Operating margin
17
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 arising from acquisitions.
3. Mainly including donations and expenses incurred for the Group’s Sustainable Social Value & Common Prosperity Programme initiatives.

40.6
46.3
44.2
41.7
48.9
52.3
56.8
54.8
55.6
53.0
57.7
55.5
57.6
Marketing Services (%)
50.6
51.7
49.8
53.9 54.0
55.5
53.7
57.3
57.0
57.5
55.9
59.6
60.4
Value-added Services (%)
Gross Margins
33.3 33.3
33.6
34.5
38.4
40.9
43.9
45.6
47.6 47.8
47.1
50.3
52.1
2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25
FinTech and Business Services (%)
18
43.2
44.2
42.6
45.5
47.5
49.5
50.0
52.6
53.3
53.1
52.6
55.8
56.9
Overall Gross Margin (%)

10.2
11.6
14.7
11.6
2Q24 2Q25 1Q25 2Q25
S&M
in billion RMB
Operating Expenses
19
R&D
in billion RMB
G&A (excl. R&D)
in billion RMB
17.3
20.3
18.9
20.3
2Q24 2Q25 1Q25 2Q25
Non-IFRS Non-IFRS Non-IFRS
9.2
9.4
7.9
9.4
2Q24 2Q25 1Q25 2Q25
+3%
YoY
+20%
QoQ
2Q25 S&M grew by 3% YoY and 20% QoQ
+17%
YoY
+7%
QoQ
2Q25 R& D grew by 17% YoY and 5% QoQ 2Q25 G&A (excl. R&D ) grew by 11% YoY and 2% QoQ
+14%
YoY
-21%
QoQ

25.2
27.3
25.1
30.0
30.9
33.4
31.7
36.8
36.3
36.6
34.5
38.5
37.5
2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25
(%)
Non-IFRS Operating Margin
20

QoQ 1Q2025 YoY 2Q2024 2Q2025 In billion RMB
-32% 26.4 +149% 7.2 17.9 Operating CAPEX
+13% 1.1 -20% 1.5 1.2 Non-operating CAPEX
-30% 27.5 +119% 8.7 19.1 Total CAPEX
-3% 76.9 +37% 54.1 74.4 Operating Cash Flow
-0.8% (23.0) +286% (5.9) (22.9) Less: CAPEX Paid
+21% (5.3) +2% (6.2) (6.3) Payments for media content
+44% (1.5) +31% (1.6) (2.2) Payments for lease liabilities
-9% 47.1 +7% 40.4 43.0 Free Cash Flow
-2% 476.0 +13% 415.2 468.4 Total Cash
+2% (385.8) +15% (343.4) (393.8) Less: Total Debt
-17% 90.2 +4% 71.8 74.6 Net Cash
CAPEX, FCF and Cash Position
21
• Repurchased ~39 million shares with an aggregated cost of ~RMB17.8 billion and paid cash dividend of ~RMB37.5 billion
during 2Q25
• As at 30 Jun 2025, the fair value of our shareholdings
1
in listed investee companies (excluding subsidiaries) was ~RMB714
billion (USD100 billion) and the carrying book value of our shareholdings in unlisted investee companies (excluding
subsidiaries) was ~RMB342 billion (USD48 billion)
1. Including those held via special purpose vehicles, on an attributable basis.

无法显示该图片。
4. Q&A

无法显示该图片。
Tencent Holdings Limited
2025 Second Quarter Results Presentation
Thank you!
https://www.tencent.com/ir