Strong Start to FY25 with Broad-Based Growth
Tencent reported 1Q25 revenue of RMB 180.0 billion, up 13% year-on-year and beating market expectations of RMB 174.6 billion. Net profit rose 22% year-on-year to RMB 61.3 billion, also ahead of consensus estimates. Gross margin expanded to 55.8%, while operating margin improved to 38.5%, reflecting stronger profitability and operating efficiency across its major business lines.
Solid Momentum Across Core Segments
Value Added Services (VAS) revenue climbed 17% year-on-year to RMB 92.1 billion, with domestic gaming revenue rising 24% due to a low base and sustained performance from evergreen titles like Honor of Kings and Peacekeeper Elite. The new release Delta Force gained strong traction, with daily active users exceeding 12 million. International gaming revenue rose 23%, driven by PUBG Mobile and Call of Duty. Social networks revenue grew 7% year-on-year, supported by stable video subscriptions. Source: Company data
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