Tencent Holdings Ltd · HKEX:700
Tencent — Q1 2025 Earnings Presentation
24 slides from Tencent's earnings presentation, May 14, 2025
Slide 1: 2025 First Quarter Results Presentation
2025 First Quarter Results Presentation May 14, 2025 1
Slide 2: Cautionary Note
Cautionary Note This presentation may contain forward-looking statements relating to the forecasts, targets, outlook, estimates of financial performance, opportunities, challenges, business developments, business plans and growth strategies of Tencent Holdings Limited (the “Company” or “Tencent”) an
Slide 3: 1. Overview
1. Overview 3
Slide 4: Financial Highlights
Financial Highlights In billion RMB 1Q2025 1Q2024 YoY 4Q2024 QoQ Total Revenue 180.0 159.5 +13% 172.4 +4% Value-added Services 92.1 78.6 +17% 79.0 +17% Social Networks 32.6 30.5 +7% 29.8 +10% Domestic Games1 42.9 34.5 +24% 33.2 +29% International Games 16.6 13.6 +23% 16.0 +4% Marketing Services2 31.
Slide 5: Key Services Update
Key Services Update Weixin & WeChat • #1 mobile community China • MAU at 1,402m • #1 by users and revenue QQ Global Games • Mobile devices MAU at • #1 by revenue 534m Video • #1 by paid subscriptions Mobile Payment Music Digital • #1 by MAU & DAU • #1 by paid subscriptions Content FinTech Literature
Slide 6: 2. Business Review
2. Business Review
Slide 7: Revenue
Revenue Revenue Growth (YoY %) +0.1% -3% -2% +0.5% +11% +11% +10% +7% +6% +8% +8% +11% +13% Revenue by Segment (billion RMB) 180.0 172.4 1% 167.2 1% 159.5 161.1 1% 154.6 155.2 1% 150.0 149.2 1% 145.0 1% 1% 30% 140.1 1% 1% 135.5 134.0 1% 33% 1% 32% 1% 1% 33% 31% 32% 34% 35% 32% 32% 33% 32% 32% 18% 18
Slide 8: Gross Profit
Gross Profit Gross Profit Growth (YoY %) -9% -8% -1% +7% +19% +22% +23% +25% +23% +21% +16% +17% +20% Gross Profit by Segment (billion RMB) 100.5 88.8 90.7 83.9 85.9 27% 76.5 77.6 29% 29% 70.8 28% 68.2 28% 62.0 61.9 28% 31% 57.9 18% 57.1 25% 26% 24% 26% 18% 22% 17% 19% 24% 24% 13% 18% 17% 22% 16% 12
Slide 9: High Quality Earnings Model to Support AI Investments
High Quality Earnings Model to Support AI Investments Reinvesting into AI Revenue YoY (%) Gross Profit YoY (%) Non-IFRS Operating Profit YoY (%) 30% • Existing businesses continue to generate operating leverage. 27% This provides us the capacity to “reinvest this leverage” for 23% 21% 19% 21% 20% th
Slide 10: Value-added Services
Value-added Services In billion RMB Social Networks +17% +17% • Revenue was up 7% YoY, driven by increased revenue from app-based YoY QoQ games item sales, music subscriptions and Mini Games platform service fees 92.1 92.1 • Music subscription revenue increased 17% YoY, supported by 8% YoY growth in
Slide 11: Communications & Social Networks
Communications & Social Networks Strengthening content ecosystem in Weixin • Video Accounts: Streamlined live streaming setup process and enhanced recommendation algorithms, in order to cultivate and promote more original content. Total user time spent grew rapidly YoY in 1Q25 Integrate Yuanbao as a
Slide 12: Domestic Games
Domestic Games Flagship evergreen games achieved solid growth • HoK: Gross receipts achieved record high in 1Q25, as Year of Snake-themed outfits and targeted promotion activities expanded paying user base • Peacekeeper Elite: Expansion of gameplay from battle royale mode to increasingly popular ext
Slide 13: International Games
International Games PUBG Mobile Call of Duty Mobile Delta Force • Gross receipts grew by mid teens • Gross receipts grew YoY, • PC version achieved record % YoY, benefitting from Golden benefitting from top-tier outfit and concurrent user level 1 on Steam Moon-themed events and outfits, weapon items
Slide 14: Marketing Services
Marketing Services In billion RMB Overall +20% -9% • Revenue grew 20% YoY, benefitting from higher user engagement, ongoing YoY QoQ AI upgrades to ad platform, and a strengthening transaction ecosystem within Weixin • Marketing services revenue from all major advertiser industry categories increased
Slide 15: FinTech and Business Services
FinTech and Business Services In billion RMB FinTech Services +5% -2% • Revenue grew by low single-digit % YoY, benefitting from increases in YoY QoQ consumer loan services and wealth management services • Total commercial payment volume declined slightly YoY in 1Q25, but trend improved in April • U
Slide 16: 3. Financial Review
3. Financial Review
Slide 17: Income Statement
Income Statement In billion RMB 1Q2025 1Q2024 YoY 4Q2024 QoQ Revenue 180.0 159.5 +13% 172.4 +4% COPS (79.5) (75.6) +5% (81.7) -3% Gross profit 100.5 83.9 +20% 90.7 +11% Operating expenses (41.5) (32.3) +28% (41.7) -0.4% Other gains (losses), net (1.4) 1.0 N/A 2.5 N/A Operating profit 57.6 52.6 +10%
Slide 18: Non-IFRS Adjustments
Non-IFRS Adjustments Net (gains)/ Amortisation Impairment IFRS losses from Non-IFRS In billion RMB SBC of intangible provisions/ SSV & CPP3 Tax effects YoY change QoQ change 1Q2025 investee 1Q2025 assets (reversals)2 companies1 Operating profit 57.6 10.1 - 1.5 - 0.1 - 69.3 +18% +17% Share of profit
Slide 19: Gross Margins
Gross Margins 55.8 52.6 53.3 53.1 52.6 49.5 50.0 47.5 44.2 45.5 42.1 43.2 42.6 Overall Gross Margin (%) 59.6 57.3 57.0 57.5 55.9 53.9 54.0 55.5 53.7 50.4 50.6 51.7 49.8 Value-added Services (%) 56.8 55.6 57.7 55.5 52.3 54.8 53.0 46.3 48.9 44.2 41.7 40.6 36.7 Marketing Services (%) 47.6 47.8 50.3 45.
Slide 20: Operating Expenses
Operating Expenses S&M R&D G&A (excl. R&D)1 in billion RMB in billion RMB in billion RMB +4% -24% +21% -5% +62% +28% YoY QoQ YoY QoQ YoY QoQ 18.9 19.8 18.9 14.7 14.7 10.3 15.7 11.6 7.5 7.9 7.9 9.1 1Q24 1Q25 4Q24 1Q25 1Q24 1Q25 4Q24 1Q25 1Q24 1Q25 4Q24 1Q25 Non-IFRS Non-IFRS Non-IFRS 1Q25 G&A (excl.
Slide 21: Non-IFRS Operating Margin
Non-IFRS Operating Margin 38.5 36.8 36.6 36.3 34.5 33.4 31.7 30.9 30.0 27.3 25.6 25.2 25.1 (%) 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 21
Slide 22: CAPEX, FCF and Cash Position
CAPEX, FCF and Cash Position In billion RMB 1Q2025 1Q2024 YoY 4Q2024 QoQ Operating CAPEX 26.4 6.6 +299% 34.9 -24% Non-operating CAPEX 1.1 7.8 -86% 1.7 -35% Total CAPEX 27.5 14.4 +91% 36.6 -25% Operating Cash Flow 76.9 72.3 +6% 54.0 +42% Less: CAPEX Paid (23.0) (15.2) +52% (39.0) -41% Payments for me
Slide 23: 4. Q&A
4. Q&A
Slide 24: Thank you!
Tencent Holdings Limited 2025 First Quarter Results Presentation Thank you! https://www.tencent.com/ir