Tencent Holdings reported a 90% increase in its Q4 profit, driven by strong performance in video games and AI advancements.

For the three months ending December 2024, the company recorded a profit of 51.3 billion yuan (around US$7.1 billion). This figure exceeded Bloomberg analysts’ estimates of 43.9 billion yuan (around US$6.07 billion).

The company’s revenue for the quarter rose by 11% to 172.4 billion yuan (around US$23.85 billion), surpassing projections of 168.7 billion yuan (around US$23.3 billion).

For the full year, Tencent’s profit increased by 68% to 194 billion yuan (around US$26.8 billion). Meanwhile, revenue climbed 8% to 660.2 billion yuan (around US$91.3 billion), closely aligning with forecasts.

Tencent attributed its financial gains to improvements in its advertising platform powered by AI and steady growth in its established gaming titles.

The company has also actively promoted its Hunyuan large language model across various industries as part of its AI initiatives.

Despite these strong results, Tencent’s shares listed in Hong Kong closed down 0.2% at HK$540 on Wednesday, the day before the earnings release.

Recent Tencent developments