TENCENT ANNOUNCES 2025 THIRD QUARTER RESULTS

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13 Nov, 2025, 19:16 CST

Solid Revenue Growth with Continued Operating Leverage

AI Investment s Contributing to Business Growth and Efficiency Enhancement

HONG KONG, Nov. 13, 2025 /PRNewswire/ -- Tencent Holdings Limited (HKEX: 00700 (HKD Counter) and 80700 (RMB Counter), "Tencent" or "the Company"), a world-leading Internet and technology company in China, today announced the unaudited consolidated results for the quarter ended 30 September 2025 ("3Q2025").

Mr. Ma Huateng, Chairman and CEO of Tencent, said, "During the third quarter of 2025, we achieved solid revenue and earnings growth, reflecting healthy trends across games, marketing services, and fintech and business services. Our strategic investments in AI are benefitting us in business areas such as ad targeting and game engagement, as well as in efficiency enhancement areas such as coding, and game and video production. We are upgrading the team and architecture of our HunYuan foundation model, whose image and 3D generation models are now industry leading. As HunYuan's capabilities continue to improve, our investment in growing Yuanbao adoption, and our effort in developing agentic AI capabilities within Weixin, will gain further traction."

3Q2025 Financial Highlights

Revenues: +1 5 % YoY, gross profit: +22% YoY, non-IFRS^[1]operating profit: +1 8 % YoY

Total r evenues were RMB192.9 billion, up 15% over the third quarter of 2024.
Gross profit was RMB108.8 billion, up 22% YoY.
On a non-IFRS basis , which is intended to reflect core earnings by excluding certain one-time and/or non-cash items:
- Operating profit was RMB72.6 billion, up 18% YoY. Operating margin increased to 38% from 37% last year.
- Net profit was RMB 72.8 billion, up 19% YoY.
- Net profit attributable to equity holders of the Company for the period was RMB70.6 billion, up 18% YoY.
- Basic earnings per share were RMB7.769. Diluted earnings per share were RMB7.575.
On an IFRS basis:
- Operating profit was RMB63.6 billion, up 19% YoY. Operating margin increased to 33% from 32% last year.
- Net profit was RMB64.9 billion, up 20% YoY.
- Net profit attributable to equity holders of the Company for the quarter was RMB63.1 billion, up 19% YoY.
- Basic earnings per share were RMB6.952. Diluted earnings per share were RMB6.779.

Capital expenditure was RMB13.0 billion, down 24% YoY.
F ree cash flow was RMB58.5 billion, flat YoY. Total cash was RMB493.3 billion, up 16% YoY. Net cash position totalled RMB102.4 billion, up 7% YoY.
The fair value of our shareholdings^[2] in listed investee companies (excluding subsidiaries) totalled RMB800.8 billion as at 30 September 2025, compared to RMB714.3 billion as at 30 June 2025. The carrying book value of our shareholdings in unlisted investee companies (excluding subsidiaries) was RMB345.2 billion as at 30 September 2025, compared to RMB342.3 billion as at 30 June 2025.
During 3Q2025, the Company repurchased approximately 35.4 million shares on the Hong Kong Stock Exchange for an aggregate consideration of approximately HKD21.1 billion.

^[1] Non-IFRS adjustments excludes share-based compensation, M&A related impact such as net (gains)/losses from investee companies, amortisation of intangible assets, impairment provisions/(reversals), SSV & CPP, income tax effects and others

^[2] Including those held via special purpose vehicles, on an attributable basis

3Q2025 Management Discussion and Analysis

Revenues from VAS increased by 16% year-on-year to RMB95.9 billion for 3Q2025. Domestic Games revenues were RMB42.8 billion, up 15% year-on-year, primarily reflecting contributions from recently released games such as Delta Force, growth in revenues from evergreen games such as Honour of Kings and Peacekeeper Elite, and the expansion of VALORANT from PC to mobile. International Games revenues were RMB20.8 billion, representing a 43% year-on-year increase (42% on a constant-currency basis), mainly due to higher revenues from Supercell's games, recognising revenue upfront on copy sales of new game release, and to consolidation of recently acquired studios. Social Networks revenues rose by 5% year-on-year to RMB32.3 billion, due to growth in Video Accounts live streaming revenue, music subscription revenue and Mini Games platform service fees.

Revenues from Marketing Services were RMB36.2 billion for 3Q2025, up 21% year-on-year. The growth was due to higher ad impressions, benefitting from increased user engagement and ad load, coupled with higher eCPMs, driven by AI-powered ad targeting. Advertising spending increased across all major industry categories during the quarter.

Revenues from FinTech and Business Services rose by 10% year-on-year to RMB58.2 billion for 3Q2025. FinTech Services revenue grew at a high single-digit percentage rate year-on-year, primarily due to higher revenues from commercial payment activities and consumer loan services. Business Services revenues grew at a teens percentage rate year-on-year, reflecting higher cloud services revenues, including those driven by increased enterprise customer demand for AI-related services, and higher eCommerce technology service fees arising from growth in Mini Shops GMV.

Operating Metrics

	As at 3 0 September 2025		As at 30 September 2024	Year- on-year change	As at 30 June 2025	Quarter- on-quarter change
		(in millions, unless specified)

Combined MAU of Weixin and WeChat		1,414	1,382	2 %	1,411	0.2 %

Mobile device MAU of QQ		517	562	-8 %	532	-3 %

Fee-based VAS subscriptions^[3]		265	265	stable	264	0.4 %
^[3]Average daily number of subscriptions during the quarter

3Q2025 Business Review and Outlook

For Mini Shops, we are systematically building a more vibrant transaction ecosystem, resulting in continued rapid growth in GMV. For example, we used foundation model capabilities to better understand user interests and thus improve merchandise recommendations.
We enhanced AI features in Weixin to provide new services to users and to promote greater usage of Yuanbao with encouraging results.
For our domestic games, Delta Force ranked among the top 3 games industry-wide by gross receipts during the quarter^{^[4]}. VALORANT MOBILE has become China's most successful mobile game launch year-to-date^{^[5]}.
For our international games, Clash Royale's monthly DAU and gross receipts achieved all-time highs in September 2025. Newly released game, Dying Light: The Beast, has attained a "Very Positive" average user review score on Steam^{^[6]}.
Tencent Video maintained its lead in the long-form video industry with 114 million^{^[7]} subscriptions, and Tencent Music similarly maintained its lead in the music streaming industry with 126 million^{^[8]} subscriptions.
We introduced our automated ad campaign solution, AIM+, under which advertisers can automate targeting, bidding and placement, as well as optimise ad creation, improving their return on marketing investment.
Commercial payment volume grew at a faster rate than during the second quarter, as online payment volume grew robustly while offline payment volume trend improved, particularly in the retail and transportation categories.
We enhanced HunYuan Large Language Model's complex reasoning capabilities, especially in coding, mathematics, and science. HunYuan image generation model is ranked first globally among text-to-image models by LMArena^{^[9]}.

^[4]Company data and Sensor Tower

^[5]QuestMobile and Sensor Tower, by first month DAU and gross receipts of new releases, for 1 January to 12 November 2025

^[6] 87% positive player review as of 12 November 2025

^[7] The average daily number of subscriptions for 3Q2025

^[8] The average number of subscriptions as of the last day of each month during 3Q2025

^[9] As of 12 November 2025

For other detailed disclosure, please refer to our website https://www.tencent.com/en-us/investors.html http://www.tencent.com/ir , or follow us via Weixin Official Account (Weixin ID: Tencent Global ):

About Tencent

Tencent uses technology to enrich the lives of Internet users.

Our communication and social services, Weixin and QQ, connect users with each other and with digital content and services, both online and offline, making their lives more convenient. Our targeted marketing services helps advertisers reach out to hundreds of millions of consumers in China. Our FinTech and business services support partners' business growth and assist their digital upgrade.

Tencent invests heavily in talent and technological innovation, actively promoting the development of the Internet industry. Tencent was founded in Shenzhen, China, in 1998. Tencent has been listed on the Main Board of the Stock Exchange of Hong Kong since 2004.

Investor contact: [email protected]

Media contact: [email protected]

Non-IFRS Financial Measures

To supplement the consolidated results of the Group ("the Company and its subsidiaries") prepared in accordance with IFRS, certain additional non-IFRS financial measures (in terms of operating profit, operating margin, profit for the period, profit attributable to equity holders of the Company, basic EPS and diluted EPS) have been presented in this press release. These unaudited non-IFRS financial measures should be considered in addition to, not as a substitute for, measures of the Group'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 Group's core operations by excluding certain non-cash items and certain impact of investment-related transactions. In addition, non-IFRS adjustments include relevant non-IFRS adjustments for the Group's major associates based on available published financials of the relevant major associates, or estimates made by the Company's management based on available information, certain expectations, assumptions and premises.

Forward-Looking Statements

This press release contains forward-looking statements relating to the business outlook, estimates of financial performance, forecast business plans and growth strategies of the Group. These forward-looking statements are based on information currently available to the Group and are stated herein on the basis of the outlook at the time of this press release. They are based on certain expectations, assumptions and premises, some of which are subjective or beyond our control. These forward-looking statements may prove to be incorrect and may not be realised in the future. Underlying these forward-looking statements are a lot of risks and uncertainties. In light of the risks and uncertainties, the inclusion of forward-looking statements in this press release should not be regarded as representations by the Board or the Company that the plans and objectives will be achieved, and investors should not place undue reliance on such statements.

CONDENSED CONSOLIDATED INCOME STATEMENT RMB in millions, unless specified
	Unaudited		Una udited
	3Q2025	3Q2024	3Q2025	2Q2025
Revenues	192,869	167,193	192,869	184,504
VAS	95,860	82,695	95,860	91,368
Marketing Services	36,242	29,993	36,242	35,762
FinTech and Business Services	58,174	53,089	58,174	55,536
Others	2,593	1,416	2,593	1,838
Cost of revenues	(84,071)	(78,365)	(84,071)	(79,491)
Gross profit	108,798	88,828	108,798	105,013
Gross margin	56 %	53 %	56 %	57 %
Selling and marketing expenses	(11,468)	(9,411)	(11,468)	(9,410)
General and administrative expenses	(34,259)	(29,058)	(34,259)	(31,921)
Other gains/(losses), net	483	2,974	483	(3,578)
Operating profit	63,554	53,333	63,554	60,104
Operating margin	33 %	32 %	33 %	33 %
Net gains/(losses) from investments and others	2,820	3,066	2,820	2,638
Interest income	4,256	3,996	4,256	4,121
Finance costs	(3,756)	(3,531)	(3,756)	(3,941)
Share of profit/(loss) of associates and joint ventures, net	7,854	6,019	7,854	4,473
Profit before income tax	74,728	62,883	74,728	67,395
Income tax expense	(9,785)	(8,900)	(9,785)	(11,351)
Profit for the period	64,943	53,983	64,943	56,044

Attributable to:
Equity holders of the Company	63,133	53,230	63,133	55,628
Non-controlling interests	1,810	753	1,810	416

Non-IFRS operating profit	72,570	61,274	72,570	69,248
Non-IFRS profit attributable to equity holders of the Company	70,551	59,813	70,551	63,052

Earnings per share for profit attributable to equity holders of the Company (in RMB per share)
- basic	6.952	5.762	6.952	6.115
- diluted	6.779	5.644	6.779	5.996

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME RMB in millions, unless specified

	Una udited
	3 Q2025	3Q2024
Profit for the period	64,943	53,983
Other comprehensive income, net of tax:
Items that may be subsequently reclassified to profit or loss
Share of other comprehensive income of associates and joint ventures	(722)	155
Transfer of share of other comprehensive income to profit or loss upon disposal and deemed disposal of associates and joint ventures	(92)	-
Net (losses)/gains from changes in fair value of financial assets at fair value through other comprehensive income	(18)	20
Transfer to profit or loss upon disposal of financial assets at fair value through other comprehensive income	(5)	-
Currency translation differences	(3,895)	(2,909)
Net movement in reserves for hedges	308	(880)
Items that will not be subsequently reclassified to profit or loss
Share of other comprehensive income of associates and joint ventures	12	52
Net gains from changes in fair value of financial assets at fair value through other comprehensive income	17,479	33,578
Currency translation differences	(966)	(153)
Net movement in reserves for hedges	(14)	19
	12,087	29,882
Total comprehensive income for the period	77,030	83,865
Attributable to:
Equity holders of the Company	76,499	82,179
Non-controlling interests	531	1,686

O THER FINANCIAL INFORMATION RMB in millions, unless specified

	Unaudited
	3 Q202 5	3Q2024	2Q2025
EBITDA (a)	80,357	64,397	79,467
Adjusted EBITDA (a)	86,698	69,656	85,122
Adjusted EBITDA margin (b)	45 %	42 %	46 %
Interest and related expenses	3,206	3,145	3,541
Net cash (c)	102,422	95,462	74,592
Capital expenditures (d)	12,983	17,094	19,107
Note: (a) EBITDA is calculated as operating profit minus other gains/(losses), net, and adding back depreciation of property, plant and equipment, investment properties as well as right-of-use assets, and amortisation of intangible assets and land use rights. Adjusted EBITDA is calculated as EBITDA plus equity-settled share-based compensation expenses (b) Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by revenues (c) Net cash represents period end balance and is calculated as cash and cash equivalents, plus term deposits and others, including highly liquid investment products held for treasury purposes, minus borrowings and notes payable (d) Capital expenditures primarily consist of investments in IT infrastructure (including computer equipment, components, and software), data centres, land use rights, office premises and intellectual properties (excluding media content)

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
RMB in millions, unless specified
	Una udited	Audited
	As at 30 September, 202 5	As at 31 December, 2024
ASSETS
Non-current assets
Property, plant and equipment	140,463		80,185
Land use rights	22,489		23,117
Right-of-use assets	16,680		17,679
Construction in progress	9,542		12,302
Investment properties	955		801
Intangible assets	212,459		196,127
Investments in associates	321,278		290,343
Investments in joint ventures	6,708		7,072
Financial assets at fair value through profit or loss	208,447		204,999
Financial assets at fair value through other comprehensive income	417,503		302,360
Prepayments, deposits and other assets	24,556		42,828
Other financial assets	1,411		1,076
Deferred income tax assets	29,943		28,325
Term deposits	78,685		77,601

	1,491,119		1,284,815

Current assets
Inventories	550		440
Accounts receivable	52,357		48,203
Prepayments, deposits and other assets	103,016		101,044
Other financial assets	4,525		4,750
Financial assets at fair value through profit or loss	23,742		9,568
Financial assets at fair value through other comprehensive income	8,256		3,345
Term deposits	226,146		192,977
Restricted cash	3,579		3,334
Cash and cash equivalents	159,982		132,519

	582,153		496,180

Total assets	2,073,272		1,780,995

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (continued)
RMB in millions, unless specified
	Una udited	Audited
	As at 3 0 September, 202 5	As at 31 December, 2024
EQUITY
Equity attributable to equity holders of the Company
Share capital	-		-
Share premium	57,750		43,079
Treasury shares	(2,514)		(3,597)
Shares held for share award schemes	(7,182)		(5,093)
Other reserves	158,719		47,129
Retained earnings	965,307		892,030
	1,172,080		973,548

Non-controlling interests	88,435		80,348

Total equity	1,260,515		1,053,896

LIABILITIES
Non-current liabilities
Borrowings	200,696		146,521
Notes payable	127,382		130,586
Long-term payables	11,750		10,201
Other financial liabilities	5,358		4,203
Deferred income tax liabilities	21,416		18,546
Lease liabilities	13,069		13,897
Deferred revenue	3,852		6,236

	383,523		330,190

Current liabilities
Accounts payable	128,749		118,712
Other payables and accruals	83,354		84,032
Borrowings	52,193		52,885
Notes payable	10,655		8,623
Current income tax liabilities	17,222		16,586
Other tax liabilities	4,601		4,038
Other financial liabilities	5,121		6,336
Lease liabilities	5,300		5,600
Deferred revenue	122,039		100,097

	429,234		396,909

Total liabilities	812,757		727,099

Total equity and liabilities	2,073,272		1,780,995

RECONCILIATIONS OF THE GROUP'S NON-IFRS FINANCIAL MEASURES TO THE NEAREST MEASURES PREPARED IN ACCORDANCE WITH IFRS

reported

Adjustments

Non-IFRS

RMB in millions,

unless specified

Share-based

compensation
(a)

Net
(gains)/losses
from investee
companies (b)

Amortisation of

intangible assets
(c)

Impairment

provisions/
(reversals) (d)

SSV & CPP
(e)

Others

(f)

Income

tax effects
( g )

Unaudited t hree months ended 30 September 2025

Operating profit

63,554

7,188

–

1,622

–

206

–

72,570

Share of profit/(loss) of associates
and joint ventures, net

7,854

909

(555)

1,755

(1)

–

360

–

10,322

Profit for the period

64,943

8,097

1,703

3,377

(4,798)

321

360

(1,207)

72,796

Profit attributable to

equity holders

63,133

7,905

1,730

3,003

(4,805)

321

360

(1,096)

70,551

Operating margin

33 %

38 %

Unaudited three months ended 30 September 2024

Operating profit

53,333

6,377

–

1,324

–

240

–

61,274

Share of profit/(loss) of associates
and joint ventures, net

6,019

985

1,433

–

8,509

Profit for the period

53,983

7,362

(6,610)

2,757

3,788

304

–

(653)

60,931

Profit attributable to equity holders

53,230

7,180

(6,664)

2,591

3,766

304

–

(594)

59,813

Operating margin

32 %

37 %

Unaudited three months ended 30 June 2025

Operating profit

60,104

7,361

–

1,614

–

169

–

69,248

Share of profit/(loss) of associates
and joint ventures, net

4,473

903

(798)

1,544

226

–

6,348

Profit for the period

56,044

8,264

(2,396)

3,158

(372)

751

–

(683)

64,766

Profit attributable to equity holders

55,628

8,071

(3,192)

2,848

(405)

751

–

(649)

63,052

Operating margin

33 %

38 %

Note:
(a) Including put options granted to employees of investee companies on their shares and shares to be issued under investee companies' share-based incentive plans which can be acquired by the Group, and other
incentives
(b) 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
(c) Amortisation of intangible assets resulting from acquisitions
(d) Mainly including impairment provisions/(reversals) for associates, joint ventures, goodwill and other intangible assets arising from acquisitions
(e) Mainly including donations and expenses incurred for the Group's Sustainable Social Value and Common Prosperity Programme ("SSV & CPP") initiatives
(f) Primarily non-recurring compliance-related costs and expenses incurred for certain litigation settlements of the Group and/or arising from investee companies
(g) Income tax effects of non-IFRS adjustments

SOURCE Tencent