Tencent Holdings Faces Challenges in AI Monetisation While Gaming Revenue Grows

Tencent Holdings and AI Monetisation Challenges

Tencent Holdings is currently facing challenges in AI monetisation despite its notable revenue increases in gaming and social media sectors. President Martin Lau indicated that their investments in artificial intelligence have not yet translated into significant earnings and may require additional time before achieving a meaningful impact on the company’s finances.

Gaming Revenue Growth and Investment Highlights

For the quarter ending September 30, Tencent reported revenue of 167.19 billion yuan ($23.14 billion), aligning closely with analyst estimates. This reflects an 8% increase, driven primarily by the success of game titles like Dungeon & Fighter Mobile and Delta Force. Furthermore, the company aims to expand its gaming portfolio by investing in studios that create popular titles such as the successful Black Myth: Wukong.

Marketing Services and Future Perspectives

• Tencent’s fintech and cloud services reported modest growth of 2%.
• Market services experienced a 17% increase, earning 30 billion yuan.
• Weak consumer spending has pressured the payments segment, reflecting broader economic trends.

Tencent's continued investment in AI remains a focus, with President Lau acknowledging that while targeted advertising improvements have been implemented, substantial revenue growth from these initiatives is expected to take additional time.