Tencent's Q1 gaming revenue grows by over 10%; AI takes center stage in the earnings report

After the market closed today (the 13th), Tencent released its Q1 financial results. The report showed that Tencent’s total revenue for Q1 was 196.46 billion yuan, up 9% year-over-year; adjusted net profit was 67.91 billion yuan, up 11% year-over-year.

In Q1, Tencent’s gaming business generated revenue of 64.2 billion yuan, an 8% increase year-over-year. Of this, domestic market revenue was 45.4 billion yuan, up 6% year-over-year, while overseas market revenue was 18.8 billion yuan, up 13% year-over-year.

Tencent stated that because the Spring Festival fell later this year, revenue from some games was deferred to subsequent quarters; as a result, actual domestic game revenue growth exceeded 10%.

Long-running games such as “Honor of Kings” have once again set new revenue records

The financial report noted that Tencent’s long-running titles, including *Honor of Kings*, *Peacekeeper Elite*, and *Operation Delta*, achieved record-high revenue in Q1. Meanwhile, the new game *Lock Kingdom: World* has also been a huge hit since its launch.

According to Tencent’s previous disclosures, *Operation Delta* has surpassed 50 million daily active users, while *Peacekeeper Elite* reached 90 million daily active users during the Spring Festival, both of which reflect the strong momentum of Tencent’s shooter games.

In overseas markets, revenue growth from PC games such as *Clash Royale*, *Roar of the Tide*, and *Valorant* drove a 13% increase in overseas revenue.

AI has taken center stage in financial reports

Both the business overview and the acknowledgments section of Tencent’s earnings report highlighted the company’s achievements in AI development this year, while devoting little attention to the development of other business segments. With a total of 29 mentions of AI across the entire report, this is clearly the area Tencent’s management sought to emphasize.

Tencent stated that following the reorganization of its AI team, it has released products such as the Hy3 preview model and WorkBuddy this year. Since late April, the Hy3 preview model has become the most widely used model on OpenRouter in terms of token consumption.

Interestingly, at today’s annual shareholders’ meeting, when an investor asked whether Tencent was falling behind in the AI sector, Ma Huateng replied, “A year ago, we thought we’d boarded the ship, only to discover later that it was taking on water. Now we feel like we’ve managed to get on board, but we can’t quite settle in yet—we still hope the ship will pick up speed.”

Ma Huateng believes that by continuously addressing weaknesses through talent development, team management, and internal training, Tencent’s AI business is now gradually getting on track.