NIX Solutions: Tencent Reports Strong Q3 Profit Growth

Tencent, a major Chinese tech company, reported a notable 47% increase in net profit for the third quarter compared to the same period last year, reaching 53.23 billion yuan ($7.36 billion). This figure surpassed analysts’ forecasts, who anticipated a quarterly profit of around 46.18 billion yuan.

NIX Solutions

Revenue Growth Driven by Gaming and Advertising

The company’s total revenue for the quarter amounted to 167.193 billion yuan, an 8% rise year-on-year. The gaming segment continues to be Tencent’s primary revenue driver. In the domestic market, gaming revenue rose by 14% year-on-year to 37.3 billion yuan, while revenue in the global market grew by 11% to 14.5 billion yuan. Tencent’s online advertising segment also saw robust growth, with revenue increasing by 17% to 29.99 billion yuan, attributed to “strong demand from advertisers” for short videos, mini-apps, and search features in the Weixin (WeChat) messaging platform, adds NIX Solutions.

AI Integration and Growing User Base

Tencent highlighted the benefits of artificial intelligence (AI) integration in its products, enhancing marketing services and cloud technologies. “We increasingly see tangible benefits from the implementation of AI in our products and processes, including marketing services and cloud technologies, and will continue to invest in AI-powered technologies, tools, and solutions that help users and partners,” Tencent stated. The company also noted a 3% increase in the monthly active users of its Weixin and WeChat messenger platforms, reaching 1.38 billion users.

We’ll keep you updated on Tencent’s performance and innovations as they continue leveraging AI to drive growth in various business segments.