Tencent misses Q1 revenue estimates, bets on AI for growth
Tencent Holdings' first-quarter revenue missed estimates amid a slowdown in gaming sales, while the company pledged continued investment in artificial intelligence. First-quarter sales grew 9% to 196.5 billion yuan ($28.9 billion), missing the 199.4 billion yuan consensus. Net income reached 67.9 billion yuan on a non-IFRS basis, up 11% year-on-year but lagging the previous quarter's 17% growth. Video game sales grew 6% domestically and 13% overseas. CEO Pony Ma Huateng stated the company made significant initial progress on new AI products and is using AI to grow existing businesses.
Key facts
- Tencent's Q1 revenue missed estimates of 199.4 billion yuan.
- Revenue grew 9% to 196.5 billion yuan ($28.9 billion).
- Net income (non-IFRS) was 67.9 billion yuan, up 11% year-on-year.
- Video game sales grew 6% domestically and 13% overseas.
- Tencent is betting on AI for future growth.
- CEO Pony Ma Huateng highlighted progress on AI products.
- Gaming sales slowdown attributed to a late Spring Festival.
- Tencent operates the world's largest video game publisher by revenue.
Entities
Institutions
- Tencent Holdings
- Bloomberg
Locations
- China