Tencent's Q2 Profit Growth Slows as AI Investments Take Hold

On August 12, Tencent Holdings Limited (HKEX: 00700) released its financial results for the second quarter of 2024. The report showed that Tencent's total revenue for the quarter amounted to RMB 204.79 billion, an 11% year-over-year increase. Net profit attributable to shareholders was RMB 56 billion, up 0.7% year-over-year but down 2% quarter-over-quarter. Under non-IFRS measures, net profit attributable to shareholders reached RMB 68.4 billion, a 9% year-over-year increase. Tencent stated that it significantly increased its investment in artificial intelligence during the second quarter; excluding the impact of new AI products, non-IFRS operating profit would have been RMB 86.1 billion, representing a 19% year-over-year growth.