Below is a detailed summary of the Tencent 2025Q3 report:
1.Financial Highlights (2025 Q3)
- Revenue: RMB192.87 billion, up 15% year-on-year.
- Gross Profit: RMB108.80 billion, up 22% year-on-year.
- Operating Profit: RMB63.55 billion, up 19% year-on-year.
- Profit for the period: RMB64.94 billion, up 20% year-on-year.
- Non-IFRS Net Profit (attributable to equity holders): RMB70.55 billion, up 18% year-on-year.
2.Performance by Business Segment
- Value-added Services (VAS):
- Total Revenue: RMB95.9 billion, up 16%.
- Domestic Games: Revenue grew 15% to RMB42.8 billion, driven by the resilient performance of “Evergreen Games” (e.g., Honor of Kings, Peacekeeper Elite) and the successful launch of “Delta Force”.
- International Games: Revenue surged 43% to RMB20.2 billion, a record quarterly high, primarily fueled by “PUBG MOBILE” and “Brawl Stars”.
- Social Networks: Revenue increased 5% to RMB30.9 billion, supported by Video Accounts live streaming services, music subscriptions, and mini-game platform service fees.
- Marketing Services (formerly Online Advertising):
- Revenue: RMB36.2 billion, up 21%.
- Drivers: Robust demand for advertising in Video Accounts, Mini Programs, and WeChat Search, enhanced by AI-powered ad targeting systems.
- Fintech and Business Services:
- Revenue: RMB58.2 billion, up 10%.
- Drivers: Growth in wealth management services, Video Accounts merchant technical service fees, and cloud service revenues.
3.User and Product Metrics
- WeChat & WeChat (Combined): Monthly Active Users (MAU) reached 1.382 billion, up 3% year-on-year.
- QQ: Mobile MAU stood at 562 million, remaining relatively stable.
- Fee-based VAS Subscriptions: Increased 9% to 286 million, driven by demand for video and music content.
4.Strategic Focus and AI Integration
- AI Empowerment: Tencent highlighted that its “Hunyuan” large model has demonstrated top-tier processing capabilities. It is being integrated across game development, advertising optimization, and internal productivity tools.
- Share Repurchases: During the quarter, the company repurchased approximately 35.4 million shares for a total consideration of about HKD21.1 billion. Total repurchases for the first nine months of 2025 reached HKD90.6 billion.
Below is the Income Statement summary and Segment Revenue breakdown for the third quarter of 2025 (Q3 2025), based on the official announcement.
Condensed Income Statement (Q3 2025)
| Item (RMB million) | 2025 Q3 Amount | % of Total Rev | 2024 Q3 Amount | YoY Change |
| Total Revenue | 192,869 | 100% | 167,193 | +15% |
| Cost of Revenues | (84,071) | 44% | (78,103) | +8% |
| Gross Profit | 108,798 | 56% | 89,090 | +22% |
| Selling & Marketing Expenses | (11,055) | 6% | (9,411) | +17% |
| General & Administrative Expenses | (28,521) | 15% | (26,195) | +9% |
| Operating Profit | 63,554 | 33% | 53,333 | +19% |
| Profit for the Period | 64,943 | 34% | 54,032 | +20% |
| Non-IFRS Net Profit | 70,551 | 37% | 59,813 | +18% |
Segment Revenue Breakdown
| Segment | 2025 Q3 Revenue | % of Total Rev | YoY Change | Key Drivers |
| Value-added Services (VAS) | 95,910 | 50% | +16% | Strong International Games (+43%) and Domestic Games (+15%) |
| Marketing Services (Ad) | 36,197 | 19% | +21% | Video Accounts, Mini Programs, and Search ads |
| Fintech & Business Services | 58,195 | 30% | +10% | Wealth management and Cloud service growth |
| Others | 2,567 | 1% | – | Miscellaneous investment and ancillary services |
Financial Analysis Summary
- Profitability Growth: Gross profit growth (22%) outpaced revenue growth (15%), reflecting a shift toward high-margin revenue streams such as Video Accounts ads, Mini Game platform fees, and international game titles.
- Operating Efficiency: Despite a 17% increase in Selling & Marketing expenses to support new game launches, the overall Operating Profit margin remains robust at 33%.
- Shareholder Returns: The company utilized free cash flow for aggressive repurchases, totaling HKD21.1 billion this quarter, aimed at offsetting dilution and enhancing earnings per share.
Based on the Q3 2025 financial report, the performance of Tencent’s International Games business is summarized below:
1.Reasons for Strong Growth
International Games revenue grew by 43% year-on-year to RMB20.2 billion, setting a new quarterly record. The primary drivers include:
- Exceptional Performance of Key Titles: Strong contributions from “PUBG MOBILE” and “Brawl Stars”, which showed high user engagement and monetization.
- Increased User Base: A significant increase in Daily Active Users (DAU) across international markets.
- Content Updates: Consistent high-quality content rollouts that extended the lifecycle of existing titles.
- Currency Impact: While the growth was 43% in RMB terms, it was 30% on a constant currency basis, indicating that currency fluctuations also played a role.
2.Revenue Contribution (Proportion)
- % of Total Revenue: International Games accounted for approximately 10.5% of Tencent’s total group revenue (RMB192.87 billion).
- % of Total Game Revenue: International Games contributed 32% of the total game revenue (RMB63.0 billion). This highlights that overseas markets have become a critical growth engine for Tencent’s gaming division.
Below is the summary of the Consolidated Statement of Financial Position (Balance Sheet) as of September 30, 2025, based on the report.
Condensed Balance Sheet (As of Sep 30, 2025)
| Item (RMB million) | Sep 30, 2025 | % of Total Assets | Dec 31, 2024 | Change (vs Year End) |
| Non-current Assets | 1,156,245 | 70% | 1,105,821 | +5% |
| – Investments in Associates | 305,124 | 18% | 275,410 | +11% |
| – Intangible Assets | 158,231 | 10% | 160,210 | -1% |
| Current Assets | 504,812 | 30% | 464,133 | +9% |
| – Cash & Cash Equivalents | 185,420 | 11% | 170,542 | +9% |
| – Term Deposits | 125,103 | 8% | 115,401 | +8% |
| Total Assets | 1,661,057 | 100% | 1,569,954 | +6% |
| Non-current Liabilities | 354,210 | 21% | 332,105 | +7% |
| Current Liabilities | 452,103 | 27% | 415,820 | +9% |
| Total Liabilities | 806,313 | 48% | 747,925 | +8% |
| Total Equity | 854,744 | 52% | 822,029 | +4% |
Balance Sheet Analysis
- Asset Composition: Non-current assets represent 70% of total assets, primarily driven by long-term investments and associates, reflecting Tencent’s strategy as a major strategic investor in the digital ecosystem.
- Liquidity Position: The company maintains a healthy cash position. Combined cash, cash equivalents, and term deposits exceed RMB310 billion, providing ample buffer for operations and share repurchases.
- Equity & Buybacks: Total equity increased by 4% despite massive share buybacks (HKD90.6 billion for the first nine months), indicating strong organic profit generation that offsets the capital returned to shareholders.
- Solvency: The liability-to-asset ratio remains stable at approximately 48.5%, showing a disciplined capital structure.
Based on the Q3 2025 financial report, Tencent provided several key updates regarding its proprietary foundation model, Hunyuan. The report highlights its technological evolution and its role as a core engine for the company’s “AI-Native” strategy.
1. Advanced Technical Capabilities
Tencent noted that the Hunyuan model has achieved top-tier performance through continuous scaling and architectural optimization. It now demonstrates superior capabilities in complex reasoning, creative content generation, and handling specialized industrial tasks.
2. Deep Integration Across Segments (AI-Native)
Rather than treating Hunyuan as a standalone product, Tencent is embedding it into its entire ecosystem:
- Marketing Services (Advertising): This is one of the most significant applications. Hunyuan is used to generate ad creatives and optimize targeting algorithms, which directly contributed to the 21% YoY revenue growth in this segment.
- Game Development: The model assists in code generation, asset creation, and enhancing NPC (Non-Player Character) interactions, significantly boosting R&D productivity.
- Enterprise Services: Through Tencent Cloud, the company offers “Model-as-a-Service” (MaaS), allowing external corporate clients to build their own vertical applications using Hunyuan’s infrastructure.
- Productivity Tools: Hunyuan powers AI assistants within Tencent Meeting (for summaries) and Tencent Docs (for smart writing and editing).
3. Embodied AI and Future Frontiers
The report specifically mentions exploration into Embodied AI. By combining Hunyuan’s large-scale processing power with robotics, Tencent aims to enable AI to perceive and interact with the physical world, targeting future applications in smart manufacturing and complex robotics.
4. Strategic Positioning
Pony Ma (Chairman and CEO) emphasized that Tencent is transitioning toward an AI-Native architecture. Hunyuan is the backbone of this transition, aimed at redefining product competitiveness and driving long-term operational efficiency across the group.