Peter Smith
⬤ Tencent posted revenue of 192.9 billion yuan for the September quarter—up 15% from a year earlier—while net income climbed about 19%. Bloomberg's latest analyst estimates show Tencent's net income growth in positive territory for the three months ended September 30, while Baidu, Alibaba, and JD.com all show negative year-over-year profit estimates.
⬤ The Bloomberg chart "Tencent's Profit Growth Bucks China Tech Declines" makes the contrast clear: Tencent's bar sits just above zero, while the other three companies show declines ranging from -50% to -100%. Tencent's international gaming revenue jumped 43% in the quarter, showcasing the strength of its overseas gaming business. Bloomberg Intelligence notes that Tencent's earnings are tracking "high-teen" percentage growth for the year, helped by AI integration in game design and digital advertising.
⬤ Bloomberg Intelligence expects Tencent's free cash flow to grow 10–15% annually from 2025 to 2028 and says the company is in a better position than its e-commerce rivals. The mix of double-digit revenue and profit growth, accelerating international gaming expansion, and improving cash flow sets Tencent apart from other big Chinese tech names in the Bloomberg chart.
⬤ For investors, Tencent's performance suggests the stock may keep outpacing other major Chinese tech companies that are currently seeing profits fall. The company's stronger earnings path—reflected in both analyst estimates and recent quarterly results—could be a key factor in how the market views Tencent's relative appeal within China's tech sector.
Peter Smith
