Pony Ma's Tencent Achieves 47% Profit Surge With Strong Video Gaming and AI Investments

Wednesday, 13 November 2024, 09:14

Pony Ma's Tencent has achieved a remarkable 47% profit surge, driven by its dominant video gaming sector and substantial investments in artificial intelligence. The third-quarter profit reached 53.2 billion yuan, surpassing analyst expectations, while revenue climbed to 167.2 billion yuan. Tencent's strategic focus on new game releases and AI deployment bodes well for its future growth potential.
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Pony Ma's Tencent Achieves 47% Profit Surge With Strong Video Gaming and AI Investments

Pony Ma's Tencent Sees Profits Skyrocket

Tencent Holdings, operator of China's largest social media platform and the world's biggest video gaming company, proved its mettle by surpassing analyst predictions with a savvy 47% profit jump during the third quarter of 2024. Profit soared to 53.2 billion yuan (US$7.4 billion), a substantial increase from last year’s 36.2 billion yuan. The company’s revenue also witnessed an uptick, reaching 167.2 billion yuan, which was on par with analysts’ estimates.

Video Gaming Segment Leads the Charge

During this period, Tencent's gaming division, traditionally the strongest revenue driver, sustained a 14% growth in the domestic market alongside a 9% increase internationally, yielding 37.3 billion yuan and 14.5 billion yuan respectively. Games such as Honor of Kings, Peacekeeper Elite, and the newly launched Dungeon & Fighter Mobile contributed significantly to these gains. According to Sensor Tower, these titles ranked among the highest-grossing games in Apple China’s iOS store in September.

Innovating with AI

Pony Ma Huateng emphasized the benefits of artificial intelligence in enhancing operations and expanding their product offerings. The integration of AI technologies is set to spearhead new growth opportunities, particularly through the utilization of Tencent's Hunyuan large language model.

Strategic Partnerships and Market Impact

In a significant move, Alibaba Group Holding brokered a historic deal with Tencent to enable merchants on its platforms to accept WeChat Pay, aiming to leverage e-commerce synergies. As Tencent lays the groundwork for future advancements in cloud computing and AI, it is also addressing the growing competitive landscape in China’s tech sector.

Key Financial Metrics

  • Q3 Profit: 53.2 billion yuan
  • Q3 Revenue: 167.2 billion yuan
  • Video Gaming Revenue: 37.3 billion yuan domestically
  • Video Gaming Revenue: 14.5 billion yuan internationally

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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