Tencent Holdings Ltd · HKEX:700

Tencent — Q4 2025 Earnings Presentation

32 slides from Tencent's earnings presentation, Mar 18, 2026

  1. Slide 1: 2025 Fourth Quarter and Annual Results Presentation

    2025 Fourth Quarter and Annual Results Presentation March 18, 2026

  2. 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

  3. Slide 3: 1. Overview

    1. Overview 3

  4. Slide 4: 2025 Annual Highlights

    2025 Annual Highlights Achieved high quality growth with evergreen products and services, reinforced by application of AI • Widened evergreen game portfolio with breakout success of Delta Force, and reinforced existing evergreen games such as Honour of Kings and Peacekeeper Elite; AI accelerates con

  5. Slide 5: Financial Highlights

    Financial Highlights In billion RMB 4Q2025 YoY QoQ FY2025 YoY Total Revenue 194.4 +13% +0.8% 751.8 +14% Value-added Services 89.9 +14% -6% 369.3 +16% Social Networks 30.6 +3% -5% 127.7 +5% Domestic Games1 38.2 +15% -11% 164.2 +18% International Games 21.1 +32% +1% 77.4 +33% Marketing Services 41.1 +

  6. Slide 6: 2. Strategy Review

    无法显示该图片。 2. Strategy Review

  7. Slide 7: Our key franchises are resilient in age of AI

    Our key franchises are resilient in age of AI Criteria for product/service resilience to AI • Network effects (consumer to consumer, consumer to content creator, consumer to business) • Depth and value added along supply chain • Regulatory environment and license requirements • Scarce/unique resourc

  8. Slide 8: We are a leader in strengthening our core businesses with AI

    We are a leader in strengthening our core businesses with AI • During early stage, our initial AI priority was to be a pioneer in using AI to reinforce our core businesses • We believe that in each of our core businesses, we are now a China and global leader in leveraging AI to strengthen and accele

  9. Slide 9: We are a leader in strengthening our core businesses with AI

    We are a leader in strengthening our core businesses with AI • Long-sequence large model enhances intelligence of content recommendation, boosting user growth, user engagement, and Video content distribution Accounts • Consequently, now #2 short video service by DAU in China, and growing at fastest

  10. Slide 10: We are developing new AI capabilities and products to capture exciting new opportunities

    We are developing new AI capabilities and products to capture exciting new opportunities • From a position of strength in our core businesses, we are now adding development of new AI capabilities and products to our priorities • New AI capabilities will unlock new opportunities, as well as further d

  11. Slide 11: We are developing new AI capabilities to capture exciting new opportunities

    We are developing new AI capabilities to capture exciting new opportunities • Embedding AI across the Weixin ecosystem to enhance user experience, spanning social interactions, information retrieval and analysis, content consumption, merchandise recommendation and customer service • Building next-ge

  12. Slide 12: Incubating New AI Products with strategic investment

    Incubating New AI Products with strategic investment Substantial investment in New AI Products in 2025 • Existing businesses are resilient and will benefit from AI • New AI products are investments for new opportunities • Costs and expenses for our new AI products were RMB7 billion in 4Q25 and RMB18

  13. Slide 13: Building Tencent Cloud into an evergreen business through strategic investment

    Building Tencent Cloud into an evergreen business through strategic investment • We are a leading cloud service provider, leveraging our understanding of software and hardware to support external customers across industries and worldwide • As one of the biggest internet platforms and thus users of t

  14. Slide 14: 3. Business Review

    无法显示该图片。 3. Business Review

  15. Slide 15: Revenue

    Revenue Revenue Growth (YoY %) +11% +11% +10% +7% +6% +8% +8% +11% +13% +15% +15% +13% +10% +8% +14% Revenue by Segment (billion RMB) 192.9 194.4 751.8 1% 184.5 1% 1% 180.0 172.4 1% 660.3 1% 167.2 1% 609.0 1% 159.5 161.1 1% 31% 154.6 155.2 1% 30% 31% 1% 150.0 149.2 1% 1% 1% 30% 1% 1% 30% 33% 32% 32%

  16. Slide 16: Gross Profit

    Gross Profit Gross Profit Growth (YoY %) +19% +22% +23% +25% +23% +21% +16% +17% +20% +22% +22% +19% +23% +19% +21% Gross Profit by Segment (billion RMB) 108.8 108.3 422.6 105.0 100.5 88.8 90.7 27% 28% 349.2 28% 83.9 85.9 28% 27% 76.5 77.6 293.1 29% 29% 29% 70.8 28% 68.2 28% 19% 20% 28% 31% 20% 23%

  17. Slide 17: Value-added Services

    Value-added Services Revenue in billion RMB Social Networks +16% YoY • 4Q25 revenue was up 3% YoY, driven by increased revenue from Video +14% -6% Accounts live streaming service and music subscriptions YoY QoQ 369.3 • Music subscription revenue increased 13% YoY, due to growth in ARPU and 95.9 319.

  18. Slide 18: Communications & Social Networks

    Communications & Social Networks Mini Shops Centralised eCommerce gateway page • Upgraded centralised eCommerce gateway page allows users to check shopping carts, see what their friends are recommending, and receive notifications from favourite shops, and is already generating substantial GMV in 4Q2

  19. Slide 19: Domestic Games

    Domestic Games Record-setting evergreen games Impactful new releases • Delta Force - maintained its position among top 3 • VALORANT MOBILE - most successful new mobile games industry-wide in 4Q251. Peak DAU exceeded 50 game industry-wide in 20252 due to PC-level shooting million and gross receipts r

  20. Slide 20: International Games

    International Games • Ranked #3 mobile game by DAU in international markets in 4Q251, with average DAU and gross receipts more than tripled YoY and achieved life- time highs Clash Royale • Launched 10th anniversary events in March, including a limited-time roguelite PvP game mode with chaotic modifi

  21. Slide 21: Marketing Services

    Marketing Services Revenue in billion RMB Overall +19% YoY • 4Q25 revenue increased 17% YoY. Rapid growth from categories such as internet services and local services, partially offset by slower growth from +17% +13% eCommerce and financial services categories YoY QoQ • We upgraded AdTech foundation

  22. Slide 22: FinTech and Business Services

    FinTech and Business Services Revenue in billion RMB FinTech Services +8% YoY • Grew revenue by single-digit % YoY and gross profit at a higher rate in 4Q25, driven by wealth management and commercial payment services +8% +5% YoY QoQ • Commercial payment volume continued to deliver positive YoY grow

  23. Slide 23: 4. Financial Review

    无法显示该图片。 4. Financial Review

  24. Slide 24: Income Statement

    Income Statement In billion RMB 4Q2025 YoY QoQ FY2025 YoY Revenue 194.4 +13% +0.8% 751.8 +14% COPS (86.1) +5% +2% (329.2) +6% Gross profit 108.3 +19% -0.5% 422.6 +21% Operating expenses (49.3) +18% +8% (177.8) +19% Other gains (losses), net 1.3 -48% +172% (3.2) NA Operating profit 60.3 +17% -5% 241.

  25. Slide 25: Non-IFRS Adjustments

    Non-IFRS Adjustments Net (gains)/ Amortisation Impairment IFRS losses from SSV & Tax Non-IFRS YoY QoQ Non-IFRS YoY In billion RMB SBC of intangible provisions/ 4Q2025 investee CPP3 effects 4Q2025 change change FY2025 change assets (reversals)2 companies1 Operating profit 60.3 7.2 - 1.6 - 0.4 - 69.5

  26. Slide 26: Gross Margins

    Gross Margins 55.8 56.9 56.4 55.7 56.2 52.6 53.3 53.1 52.6 52.9 49.5 50.0 47.5 48.1 45.5 Overall Gross Margin (%) 60.4 61.2 60.2 59.6 59.5 57.3 57.0 57.5 56.9 55.5 55.9 53.9 54.0 53.7 54.3 Value-added Services (%) 57.7 57.6 59.7 57.5 56.8 54.8 55.6 55.5 56.7 55.4 52.3 53.0 50.6 48.9 41.7 Marketing S

  27. Slide 27: Operating Expenses

    Operating Expenses S&M R&D G&A (excl. R&D) in billion RMB in billion RMB in billion RMB +26% +13% +20% +4% +8% +9% YoY QoQ YoY QoQ YoY QoQ 13.0 13.0 11.6 12.5 11.4 12.5 10.3 11.5 23.8 22.8 23.8 19.8 4Q24 4Q25 3Q25 4Q25 4Q24 4Q25 3Q25 4Q25 4Q24 4Q25 3Q25 4Q25 +15% +21% +20% YoY YoY YoY 50.4 41.7 85.7

  28. Slide 28: Non-IFRS Operating Margin

    Non-IFRS Operating Margin 38.5 37.5 37.6 37.3 36.8 36.6 36.3 35.8 36.0 34.5 33.4 31.7 31.5 30.9 30.0 (%) 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 FY2023 FY2024 FY2025 28

  29. Slide 29: CAPEX, FCF and Cash Position

    CAPEX, FCF and Cash Position In billion RMB 4Q2025 YoY QoQ FY2025 YoY Operating CAPEX 16.9 -51% +41% 73.1 +15% Non-operating CAPEX 2.7 +60% +167% 6.1 -55% Total CAPEX 19.6 -46% +51% 79.2 +3% Operating Cash Flow 66.5 +23% -22% 303.1 +17% Less: CAPEX Paid (22.4) -43% +12% (88.3) +22% Payments for medi

  30. Slide 30: Share Repurchase and Annual Dividend

    Share Repurchase and Annual Dividend • Repurchased ~153 million shares for a consideration of ~HKD80 billion during FY2025 In millions 2025 2024 YoY Issued shares, at 1 January 9,225 9,483 -3% Shares issued for employee share option and share award schemes 52 58 -10% Shares repurchased and cancelled

  31. Slide 31: 5. Q&A

    无法显示该图片。 5. Q&A

  32. Slide 32: Thank you!

    Tencent Holdings Limited 2025 Fourth Quarter and Annual Results Presentation Thank you! https://www.tencent.com/ir

Tencent Holdings — Q4 2025 Earnings Presentation on 6ix